AAI seeks nod for Rs 5000cr infra bond

New Delhi: Battling a severe cash crunch due to lower air traffic, the Airports Authority of India (AAI) has sought government's approval to issue infrastructure bond worth Rs 5,000 crore. The authority needs to spend Rs 12,000 crore in the 11th Five Year Plan for upgrading airports across the country and revamping the air traffic services. However, AAI's revenue has been hit badly due to the sharp fall in the number of passenger and aircraft, leading to a shortfall of Rs 5,000 crore, which it wants to make up through bond.
"Clearance for issuing bond to public and raising funds is expected shortly as all the airport modernisation programmes are timebound. Among the biggest projects in the pipeline are the upgradation at Kolkata and Chennai along with several non-metro airports," said sources. The slowdown in air traffic has affected both private and state-run airport operators. Private greenfield airport operators at Bangalore and Hyderabad have been allowed to charge a user development fee from outbound passengers.
16/02/09 Saurabh Sinha/Times of India

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Categories: Airports Feb 2009