CAPA): Civil Aviation Ministry announced the Airports Authority of India (AAI) plans to invest USD496 million in the upgrade of Chennai and Kolkata airports.
The total cost of modernising airports in both Chennai and Kolkata is estimated at over USD868 million. According to the Hindu Business Times, Ashok Chawla, Secretary stated, “AAI plans to raise about USD496 million mainly in 2008-09 and 2009-10 as a major portion of the work would be undertaken at that time.
AAI will decide on what is the cheapest manner of raising the money, whether domestically or through external commercial borrowing route”.The Ministry is additionally considering a request from the State governments to share costs for acquiring the required land for the airport expansions.
Currently State governments accept the total cost of acquiring land, which is then provided to AAI for airport expansion.