Battling a resource crunch, the Airports Authority of India (AAI) is in the process of raising Rs 1,200 crore by the end of this financial year to meet its financial requirements for developing airports across the country.
Its proposal to raise Rs 5,000 crore through tax-free infrastructure bonds has not found favour with the government. But the state-owned airports operator plans to borrow Rs 2,000 crore to meet its requirements for funds, official sources said.
Till last September, AAI had raised short-term loans to the tune of Rs 380 crore, they said, adding that Rs 1,200 crore more would be raised by the end of March.
AAI manages about 125 airports across the country. Fifteen of them are profitable. Sources added that major domestic airlines owed Rs 277.55 crore as user charges to AAI till October 2009. AAI could not avoid the effects of the slowdown and had to go in for cost-cutting measures and review of its planned projects, without compromising on quality.