The government has taken up the development of the non-metro airports within the country with the objectives of providing modern infrastructure and enhancing non-aeronautical revenue. Non-metro airports numbering 35 have been identified for this purpose, which will be developed in phases.

The new concept for the 35 non-metro terminal buildings include features such as modular design; structured steel with toughened glass glazing; vertical air-conditioning system; aero-bridges - with glass walls; walkways; in-line baggage screening for check-in; escalators; improved signages; integrated building management system; intelligent terminals; CUTE; improved traffic management on city side.

Phase I: Development of 10 non-metro airports
The 10 non metro airports that have been identified for development under Phase I are Ahmedabad, Amritsar, Guwahati, Jaipur, Udaipur, Trivandrum, Lucknow, Goa, Madurai and Mangalore.

With the approval of the AAI board, global technical advisor (GTA) and Indian financial consultant (IFC) (one set each for 5 non-metro airports covering the 10 non-metro airports) were appointed. These Consultants were asked to carry out a detailed techno-economic feasibility study and submit a report with various options to be adopted by AAI for development of the 10 non-metro airports.

Phase II: Development of 15 non metro airports
The 15 airports identified for development under Phase-II are Agatti, Aurangabad, Khajuraho, Rajkot, Vadodara, Bhopal, Indore, Nagpur, Vishakhapatnam, Trichi, Bhubhaneshwar, Coimbatore, Patna, Portblair and Varanasi.

Phase III: Development of additional 10 metro airports
The 10 Non-Metro airports to be developed under Phase-III are Agartala, Dehradun, Imphal, Ranchi, Raipur, Chandigarh, Pune, Dimapur, Agra and Jammu.

Appointment of credit rating/lead arranger
AAI has already appointed a credit rating agency, a financial advisor cum lead arranger and the process for appointment of four arrangers has been completed for raising the required funds for funding the projects relating to airside, terminal building etc. at these non metro airports.
M/s. CRISIL has been appointed for "Establishment of credit rating of AAI" on 8 April 05. AAI has been accorded "AAI" stable outlook rating by CRISIL.

AAI has appointed M/s. A.K. Capital Services Ltd. as financial advisor cum lead arranger on 6 August 2005 to advise AAI on possible debt funding options, timing of reaching the market, structure of the instruments etc.
The following firms have been selected for appointment of arrangers for marketing/ placement/ syndication of bonds:

• UTI Bank Ltd.
• A.K. Capital Services Ltd.
• ICICI Securities Ltd.
• Allianz Securities Ltd.

The ministry of civil aviation has submitted a proposal to the committee on infrastructure for development of non-metro airports, state owned airports, non-functional AAI airports, green field airports and private airports. The proposal has been reviewed by the empowered sub-committee of committee on infrastructure on 3 October, 2005 and by the task force on the financing plan on 7 November, 2005.