Mihan project costs Rs 2,200 cr

Nagpur: A whopping Rs 2,200 crore will be required for setting up the Mihan project, which includes a cost escalation of 28 per cent over the estimate when the project was initially approved.
The increased requirement of funds has also led the Maharashtra Airport Development Company (MADC) to consider options such as bonds and private equity. MADC is expected to have a majority stake in the joint venture company to be set up for executing Mihan project.
MADC's vice-chairman-cum-managing director R C Sinha said various methods of raising funds are being mulled, which include bonds, private equity, securitisation of realisables and leasing out of surplus lands.
However, Sinha said the exact quantum to be raised through each method is yet to be decided. While bonds would be raised from the open market, securitisation of assets will amount to securing loan against the future revenues.
18/01/08 Shishir Arya/Times of India

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Categories: Airports Jan 2008, New Jan 2008