Maharashtra Airport Development Company to raise Rs 420cr for Mihan, smaller airports in state

Nagpur: The Maharashtra Airport Development Company (MADC) will be raising another Rs 420 crore of debt to fund its projects, including Mihan and small town airports of the state. The fresh loan has already been tied up.
MADC plans to pay back Rs 100 crore of its earlier loans of Rs 200 crore this fiscal, after which it will hold long term debt of Rs 520 crore owed to a consortium of public sector banks led by Vijaya Bank. The decision on taking further loans was approved in the company's annual general meeting held on Tuesday. MADC will be offering land outside the special economic zone (SEZ) to banks as a security against the loan.
Even earlier, a part of land under MADC was offered as security when it raised loans to meet its requirements. The debt is not backed by a state government guarantee as this practice is being discouraged these days, said MADC vice-chairman-cum-managing director UPS Madan. However, the exact quantum of land offered as security was not readily available with him.
29/06/12 Shishir Arya/Times of India

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Categories: airports Jun 2012, New Jun 2012