AAI awaits Govt nod to float infra bonds to raise Rs 5,000 cr

The government is considering a proposal of the state-owned Airports Authority of India to issue infrastructure bonds to raise Rs 5,000 crore from the market to fill the gap in meeting expenditure on modernisation of airports across the country, official sources said today.

A proposal to this effect has already been forwarded by the mini-ratna company, which is currently being processed by the Finance Ministry, the sources said. However, they said a decision was likely only after a new government takes over at the Centre.

The bonds would have a tenure of five to seven years, though this and other issues would be finalised once the government grants its nod to the proposal, they said.

All-out efforts were also being made to increase non-aeronautical revenues from the airports, which AAI was modernising through the public-private partneship (PPP) model.

Besides carrying out upgradation and expansion of 35 non-metro airports, the AAI is also in the process of modernising the airports at major metros of Kolkata and Chennai. The AAI was tasked by the Prime Minister's Committee on Infrastructure to carry out airside work, including construction of terminal buildings in 2007.

Apart from domestic airports, the AAI is also planning to expand its horizons to develop greenfield airports or modernise and expand the brownfield ones in foreign countries, the sources said, adding that it could either go alone or form joint ventures with Indian partners in these efforts.

The state-owned airports firm, which has a 'AAA' credit rating, has had a long-standing capability in building, operating and training manpower at foreign airports, they said but emphasised that the present emphasis was on consolidating the Indian airport development projects first.

The AAI has so far undertaken assignments like airport feasibility studies, airport design project implementation, project supervision, manpower training, airport management and operation on turnkey basis and providing manpower for airport operation including air traffic services, at several foreign airports. It has undertaken consultancy projects in countries like Afghanistan, Libya, Algeria, Yemen, Nepal and Maldives.

It has even provided trained experts for manning air traffic control, operation and maintenance of radars and navigational aids to many countries.

A number of Indian aviation experts are also engaged by the ICAO Technical Assistance Programmes and other consultancy assignments to various nations.

The grant of 'mini-ratna' status to the AAI last November has enabled it to take up projects worth up to Rs 500 crore without taking government approval. The decision would also enable AAI to form joint ventures with private companies to modernise airports and aviation infrastructure.