AAI to issue Rs 1k-cr tax-free bonds in FY10

New Delhi: Airport Authority of India (AAI) would issue tax-free bonds worth Rs 1,000 crore in the current financial year. The public sector airport operator has sought permission from finance ministry for Rs 5,000-crore tax-free bond issue, an AAI official said. “Finance ministry has assured us that they would soon clear tax-free status sought by us for the Rs 5,000-crore bond issue,” the official said.
The proceeds received through the bond issue would be used for modernisation of Kolkata, Chennai and 35 other non-metro airports in the country. AAI owns 92 airports and 28 civil enclaves at defence airports.
The country’s largest airport operator has seen significant fall in revenues due to reduced aircraft movement. To make up for the revenue shortfall in the expansion and modernisation work at various airports, AAI is also looking at levying a development fee on out-going passengers, at least six airports to begin with.
It has seen the development cost for Kolkata and Chennai airports escalate by about Rs 1,300 crore to Rs 5,000 crore. Besides the two metro airports, AAI is also developing 35 non-metro airports with an estimated cost of over Rs 6,000 crore.
10/07/09 Nirbhay Kumar/Economic Times

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Categories: Airports Jul 2009