Thursday, February 28, 2008

AAI lines up US$ 3.13 billion airport revamp

The country's aviation infrastructure will get a massive investment dose over the next five years. Airports Authority of India (AAI) has planned to set aside Rs 12,434 crore for the upgradation and modernisation process.

For the three metro airports in Kolkata, Chennai and Trivandrum, AAI has earmarked 43% of its planned outlay, while the rest will go into upgrading other non-metro airports and modernising the existing aeronautical facilities.

Of the Rs 5,332.13 crore earmarked for the three metro airports, Chennai has got the highest share — Rs 2,462 crore — for revamping the existing airport while the Kolkata airport will be modernised with a total outlay of Rs 2,417 crore.

Another Rs 452 crore will be spent on the Trivandrum airport. AAI has floated tenders for the modernisation of these metro projects, which are likely to be at par with India’s busiest Mumbai and Delhi airports, which are currently being re-developed by major private players.

Sources in AAI said the process to scale up two of India’s most profitable airports — Kolkata and Chennai — to world standards has already started with adequate funds put in place for the next five years.

“A major portion of the funds will go into starting new facilities like integrated passenger terminals, constructing new runways and launching hi-tech communication services. These services will be developed to global standards and several foreign partners will be roped in by AAI for construction and on turn-key basis,” said an AAI official.

It’s not just about new terminals and cargo facilities; AAI will be investing a substantial part of Rs 1,743 crore into modernisation of aeronautical communication systems at more than 125 airports managed by the authority.

The outlay will be spent installing new communication navigational systems for air traffic control (ATC) in inland and oceanic areas using satellite mode of communication at these airports for faster transfer of aircraft and cargo.

A part of the investment will also be made at the Delhi and Mumbai airports where AAI is providing ATC services.

With the upgradation of infrastructure, AAI will be able to cater to passenger traffic of 10 crore passengers per year and will be capable of handling cargo traffic of over 50 lakh tonnes annually.

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