NEW DELHI: The Public Investment Board (PIB) on Tuesday cleared the expansion and modernisation plans for the Chennai airport. Work on upgradation of the airport is expected to start in September 2008.
The Airports Authority of India (AAI) will invest Rs 1,808 crore to complete the project by October 2010. AAI will invest 80% of the required capital through internal resources, with remaining 20% coming from commercial borrowings. According to a statement issued here by the civil aviation ministry, the project funding does not include any user development fee (UDF) from passengers or budgetary support from the government.
The government in 2007 decided that the Chennai airport would not be privatised and AAI would develop it. The expansion work of the airport includes enhancement of runway capacity, apron capacity and terminal building capacity.
“The state government has handed over about 130 acres to the AAI for the development of the secondary runway. Land has also been made available by the defence authorities,” the statement said.
The existing domestic and international terminals have an annual capacity of handling 6 million and 3 million passengers, respectively. According to AAI’s master plan, the new domestic terminal would have an additional capacity of 10 million. An additional capacity of 4 million is being added to the international terminal.