Bangalore airport costs surge

Bangalore: It says volumes on India's aviation growth story. Just a year back, when the Bangalore International Airport Ltd (BIAL), the Siemens-led consortium (also comprising Unique Zurich Airport, Larsen and Toubro and the Airports Authority of India) won the Bangalore airport bid, it had planned an airport with a passenger throughput of 4.5 million for 2015.
Now, the private airport operator is forced to change its project plan by expanding the terminal building capacity to 11.50 million passengers (for 2015) with an altered forecast of air traffic growth.
The project cost has also escalated by over Rs 500 crore — from Rs 1,412 crore earlier to over Rs 1,930 crore.
Brunner said the additional amount would be raised in the form of debt from ICICI Bank. Currently, the airport project is being funded through 25% private equity, 25% government support and 50% debt.
17/05/06 Praveena Sharma/Daily News & Analysis

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