CCEA approves addl funds for Kolkata international airport

The Cabinet Committee on Economic Affairs, at a meeting chaired by Prime Minister Manmohan Singh, approved the revised cost estimate of Rs 2,325 crore for the modernisation and expansion of Netaji Subhash Chandra Bose International Airport, Kolkata (NSCBI) including construction of an integrated terminal building, an official release said.

In July 2008, the CCEA had approved Rs 1,942.51 crore for the project, cost of which had increased based on award of certain packages of work, by competitive bidding and review of scope of certain works.

The airport is likely to be inaugurated on January 23 on the birth anniversary of Netaji Subhash Chandra Bose.

The revised estimated cost of the work of Rs 2,325 crore will be met through internal resources and borrowings, the release said.

Term loan assistance of Rs 986 crore-- about 42 per cent of project cost -- has been considered at 10 per cent interest rate per annum with nine years repayment period including moratorium period of two years, the release said.

The ratio between internal resources and borrowings has been revised at 58:42 to fund the project.