Changi raises its stake in BAPL to 36.32%

As Bengal Aerotropolis’ new airport project at Durgapur inches towards completion, Singapore-based Changi Airports International (CAI) has raised its stake in the airport city project to 36.32 per cent.

This is the second time Changi has raised its stake since it joined the project. Changi Airport India, a wholly-owned subsidiary of CAI, had initially taken a 26 per cent stake in Bengal Aerotropolis Projects (BAPL). The latter is implementing the project at Andal, near Durgapur in Barddhaman district.

Later, during West Bengal chief minister Mamata Banerjee’s Singapore trip in August 2014, Changi increased its stake to 32.2 per cent, with fresh infusion of capital. Now, Changi is again understood to have infused fresh capital, to raise its stake to 36.32 per cent. “It was in the form of a rights issue,” Partha Ghosh, promoter and managing director of BAPL, told Business Standard, without further details.

“This certainly means reposing faith in the project. Ahead of the commissioning, this is a huge boost for us.”

Following this, the promoter group which includes Pragati Social Infrastructure Development, Pragati 47 Development, Citystar Infrastructures and Lend Lease Company (India), have a combined stake of 50.95 per cent. BAPL refused to detail the individual holding of these four companies. Infrastructure development and finance company IL&FS and West Bengal Industrial Development Corporation also hold 11.71 per cent and 1.02 per cent stake, respectively.

Changi is the single largest stakeholder in the project and has been at the forefront of the airport part, handling everything from project management to route development. The Singaporean company has also entered into an agreement with BAPL to operate the airport for 15 years.

Named the Kazi Nazrul Islam Airport, the project has missed several deadlines and is behind schedule by about a year. Final calibration of the navigational system was done by Airports Authority of India earlier in the month. Officials suggest the airport might start commercial operation by mid-April. Non-scheduled airline Pinnacle Air has confirmed its proposed operation on the Bagdogra-Kolkata-Durgapur route.

To attract airlines, BAPL is offering concessions on landing and parking fee, and a subsidy on seats. Also, Bengal has waived the sales tax on aviation turbine fuel at the airport, along with Cooch Behar and Bagdogra, for a three-year period. Negotiations are on with both IndiGo and GoAir on concessional agreements, with both having shown interest for the Delhi-Durgapur route.