Airport revamp: BIAL to spend Rs.1,000 crore

Bangalore: The Bangalore International Airport Ltd (BIAL) consortium will invest Rs.1,000 crore (Rs.10 billion) to enhance and expand its airport at Devanahalli, about 38 km from this tech hub, a top company official said on Thursday.
'The Bengaluru international airport will have a new look with enhanced capacity in terminal 1 to meet the rapidly growing passenger traffic to and from this city,' BIAL Vice-Chairman G.V. Krishna Reddy told reporters here.
The consortium board, which was reconstituted after GVK Power and Infrastructure invested 29 percent early this year, will borrow Rs.700 crore from banks as debt and raise the balance Rs.300 crore from internal accruals and other stakeholders in proportion to their equity holding in the public-private company.
'The debt-equity portion of the proposed investment will be in the ratio of 70:30 and the renovation-cum expansion project will be implemented in 18 months,' BIAL Managing Director Sanjay Reddy said.
The country's Rs.2,500-crore greenfield airport, which began commercial operations May 23, 2008 on build, own and operate (BOO) terms after protracted delays, has been under attack for its 'shoddy image' when compared to other international airports, especially its counterpart in Hyderabad.
19/08/10 IANS/Sify.com

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Categories: airports aug 2010