AAI seeks approval to raise Rs 3,000 cr via tax-free bonds
As part of its proposal for the Budget sent to the finance ministry, the Airports Authority of India (AAI) has asked for the approval to raise Rs 3,000 crore through tax-free infrastructure bonds in the next financial year. The funds raised would be used to develop airports.
“We have asked for permission to raise Rs 3,000 crore through tax-free infrastructure bonds for AAI. If the permission is not granted, it (AAI) will raise the amount from the open market, but that would be at a higher interest rate,” said a senior civil aviation ministry official.
He added AAI had also asked for an additional Rs 750 crore for the next financial year. “This money will be used for the development and construction of airports in the north eastern region,” he said.
The state-owned airport operator had secured Budget allocation of Rs 2,526 crore for the current financial year — Rs 32 crore as budgetary support and Rs 2,494 crore as internal-external budgetary resources.
This is the airport operator’s third such proposal to the government.