Bengaluru international airport to get Rs 13,000 crore facelift

Team Udayavani, Jan 10, 2019, 12:16 PM IST

Bengaluru: The Kempegowda international airport here would undergo a massive revamp at a cost of Rs 13,000 crore comprising a new terminal, a second runway, access roads and internal road infrastructure, utilities and a multi-modal transport hub, a top official said on Thursday. 

The Phase-2 programme involves an expenditure of Rs 13,000 crore, which includes a component of Rs 2,000 crore interest, Bangalore International Airport Infrastructure Limited (BIAL) chief executive officer, Hari Marar 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 2021 would 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.

Marar said there will be zero electricity consumption 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.