Airports Authority of India to raise Rs5,000 crore infrastructure fund
19 Sep 2011
New Delhi: State-run Airports Authority of India (AAI) said Monday it will again press for government approval for its proposal to issue Rs5,000 crore worth of infrastructure bonds. The funds will allow the organisation to create and maintain airport infrastructure in the country.
"Now we will again approach the government for allowing us to issue infrastructure bonds to create and maintain high-class airport infrastructure in the country," AAI chairman, VP Agrawal, informed the media.
According to Agrawal, funds would be utilised towards development of fifteen airports in the country in the 12th Five Year Plan period.
"The funds would be used in the plan period for 15 airports in the non-metro sectors which have high potential for traffic growth," Agrawal said.
The government had earlier turned down a similar proposal from the company for raising funds through the bonds route.
According to civil aviation ministry estimates, total investment required in the aviation sector is about Rs65,000 crore and AAI said it feels that the bond route was optimal.
The AAI is currently involved in modernising 35 non-metro airports and two major airports at Kolkata and Chennai.
The company is nominally tasked with managing a string of 125 airports and air strips in the country.