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B'luru international airport to be improved under Rs 13,000 cr

Press Trust of India  |  Bengaluru 

The Kempegowda international here would undertake a massive Rs 13,000 crore programme comprising a new terminal, a second runway, access roads and internal road infrastructure, utilities and a multi-modal hub, a top said Thursday.

The Phase-2 programme involves Rs 13,000 crore, which includes a component of Rs 2,000 crore interest, Bangalore International Infrastructure Limited (BIAL) Chief Executive Officer, told reporters here.

The terminal cost itself is roughly about Rs 3,500 crore.

Marar said the entire project has to be funded in a ratio of 20 per cent equity and 80 per cent debt.

While the entire equity comes through internal approvals from BIAL, the rest has been raised through banks, he added.

Explaining about the equity coming through internal approval, Marar said only twice the BIAL has declared its dividends whereas it retained 92 per cent of all the earnings in the last 10 years which have not been distributed to the promoters.

"It means that the promoters have earned nothing for their investment as it has all been retained in the business with the specific purpose of funding the equity requirement for the expansion," Marar said.

The expansion programmes, which would be completed by 2021would provide jobs to 45,000 people, an increase of 25,000 manpower from existing 20,000 employees.

Giving an insight into the T2 terminal, Marar said it will be built at the "most affordable cost and in the most responsible manner.

"The terminal will be world class in all respects - starting from its design, the processes, the people who manage it, the sustainable practices and its performances," he said.

He said there will be zero during the day time as arrangements would be made to use renewable energy, especially solar at the terminal.

The BIAL has also taken steps to be self sustained in terms of its water requirements, he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 16:45 IST