CCCL bags Rs 12K cr Chennai airport expansion proj
The Chennai airport expansion plans will finally take off. The Chennai-based CCCL has bagged the Rs 12,000 crore project. CNBC-TV18's Divya Rajagopal and Taapsi Ramchandani find out how?
After Bangalore and Hyderabad, it's Chennai's turn to get a swanky new airport. And after over a year of protests, and red-tape, the dream will finally take wings. The Airport Authority of India has awarded the Rs 12,000 crore project to Chennai-based infrastructure company CCCL. CCCL will develop the airport in a joint venture with Canadian infrastructure company Herve Pomerleau International. The CCCL-led consortium piped L&T, Punj Lloyd and Nagarjuna Constructions for the project. And CCCL is confident of garnering solid returns from the Chennai airport project.
R Sarabeswar, Chairman, CCCL said, “We have been in this business for a long time and we now how to make money. We are expecting 26-30% return on capital employed"
The project is likely to be completed by 2011. But CCCL is not stopping with the Chennai airport. It will also develop the Trichy, Dehradun and Mangalore airports.
It will also bid for the re-developement of the Coimbatore airport. This process is slated to begin shortly. But it's not just the airport business that the company is banking on. It is betting big on the power sector, and has already got a Rs 95 crore deal with BHEL to set up a 600 MW power station.
Almost 30% of CCCl's revenue comes from infrastructure projects, and apart from the Chennai airport expansion it will also be bidding for the Chennai Metro Rail. And that’s why analysts believe that CCCL will be a promising bet in future.