Government allows BIAL to re-design airport at Devanahalli

07 September 2006

Mumbai: The government has permitted Bangalore International Airport Ltd to make changes in the project design so that the airport would handle 8.4 million passengers by 2010, 10 years ahead of the targeted 2020. Toward this end, the union cabinet has approved amendments to the concession agreement with BIAL.

The amendments follow fresh estimates which showed that passenger traffic would cross the projected 8.4 million in 2010 itself, considering the boom in air traffic.

Latest projections has raised the initial forecast of 41,000 aircraft movements per year in 2010 to 106,000 movements, forcing the BIAL to re-design the airport by merging the second phase of construction with the first phase to be completed by 2010.

The union cabinet approved the signing of two agreements with the joint venture firm to modify the concession agreement to factor in changes in the project design.

Redesigning would raise the project coast from Rs1,411.79 crore to Rs1,930.29 crore - up Rs518.5 crore.

BIAL hopes to raise additional funds from the market to bridge the gap. Of this, Rs450 crore would be raised through loans and the remaining Rs68.5 crore as advances from third-party service providers like cargo handlers or fuel suppliers.