Changi buys 26% in India's first airport city project

Kolkata: After one failed attempt, Singapore-based Changi Airport International (CAI) finally made an entry into India’s airport development business by announcing that it had bought 26 per cent for $20 million (approximately Rs 96 crore) in Bengal Aerotropolis Projects Ltd (BAPL).
BAPL is a special purpose vehicle that is developing India’s first airport-city project at Andal, around 200 km from Kolkata, at a cost of around Rs 10,000 crore. The company has been promoted by Pragati Social Infrastructure and Development Ltd, Lend Lease Company (India) Ltd, Citystar Infrastructures Ltd and Pragati 47 Development Ltd.
“This is CAI’s first investment in any airport project in India. We have gone beyond a planning and development consultancy partnership. CAI will have a larger role to play in the development of the airport that will be a showcase project for Bengal and India,” Wong Woon Liong, chief executive officer of CAI, said.
He added that CAI saw attractive returns on investment in the medium and long term from the Andal airport-city project.
Wong and CAI Deputy Chief Executive Officer Eugene Gan were inducted into BAPL’s 10-member board today.
CAI and BAPL had signed a technical services agreement (TSA) in February 2008, according to which CAI would review the master plan of the greenfield airport and supervise the execution of the project. It would also train the senior management of BAPL at the Singapore Aviation Academy.
The debt-equity ratio for the project was 1:2.25 for the initial investment of Rs 675 crore in the first phase, of which the airport alone would require an investment of around Rs 230 crore. The land required for the total project is 3,100 acres. The West Bengal Industrial Development Corporation Ltd is in the process of acquiring the land.
17/07/09 Business Standard

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Categories: Airports Jul 2009, Foreign Jul 2009, New Jul 2009