Rising project cost cited as reason for pumping
in funds
New Delhi, Oct. 15:
The state-owned Airports Authority of India
(AAI) plans to pump in between Rs 250 crore and Rs 300 crore as additional
equity in Mumbai International Airport Ltd (MIAL).
AAI currently has equity of about Rs 600 crore
in MIAL.
“The equity is being increased as the project
cost has increased,” a senior official said.
The nod for this proposal, expected later this
week at AAI’s board meeting, could see the state-owned airport operator raise
its equity in some other projects too.
AAI holds equity in several public-private
partnership (PPP) projects, including the airport modernisation programme at
Delhi, Hyderabad and Bangalore. Sources, however, declined to speculate on when
or by how much AAI will increase its equity in other airport projects.
Mumbai International Airport is a public-private
partnership venture between GVK, AAI and Airport Company South Africa, which
owns and operates 10 airports in that country. GVK leads the consortium with a
50.5 per cent stake, while AAI holds 26 per cent.
In November 2007, the original project cost was
revised to an estimated Rs 9,802 crore, mainly to provide for a new integrated
terminal, relocation of existing international terminal and other existing
structures to provide for more space on the airside and consolidation of
terminals 2B and 2C to pave the way for development of an integrated terminal.
In its submission to the Airports Economic Regulatory
Authority to determine the levy of development fee, MIAL said the cost was
revised to Rs 10,453 crore in October 2010 on account of certain mandated
projects.
Further, it submitted that due to delay in
handing over certain areas for construction, the schedule of the project got
extended by 17 months and with addition of certain new works the project cost
was further revised to Rs 12,380 crore.
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