AAI awaits Govt nod to float infra bonds to raise Rs 5,000 cr

New Delhi: The government is considering a proposal of the state-owned Airports Authority of India to issue infrastructure bonds to raise Rs 5,000 crore from the market to fill the gap in meeting expenditure on modernisation of airports across the country, official sources said today.
A proposal to this effect has already been forwarded by the mini-ratna company, which is currently being processed by the Finance Ministry, the sources said. However, they said a decision was likely only after a new government takes over at the Centre.
The bonds would have a tenure of five to seven years, though this and other issues would be finalised once the government grants its nod to the proposal, they said.
All-out efforts were also being made to increase non-aeronautical revenues from the airports, which AAI was modernising through the public-private partneship (PPP) model.
Besides carrying out upgradation and expansion of 35 non-metro airports, the AAI is also in the process of modernising the airports at major metros of Kolkata and Chennai. The AAI was tasked by the Prime Minister's Committee on Infrastructure to carry out airside work, including construction of terminal buildings in 2007.
Apart from domestic airports, the AAI is also planning to expand its horizons to develop greenfield airports or modernise and expand the brownfield ones in foreign countries, the sources said, adding that it could either go alone or form joint ventures with Indian partners in these efforts.
08/05/09 Press Trust of India/Business Standard

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Categories: Airports May 2009