BIAL gets Centre's nod to re-design Devanahalli airport

The Centre today paved the way for Bangalore International Airport Ltd to make changes in the project design so as to be able to serve 8.4 million passengers by 2010 as against the earlier target of 2020.

The Union cabinet approved amendments to the agreement with BIAL, allowing the joint venture firm to re-design the airport under construction at Devanahalli.

Traffic estimates in 2000 had shown that 8.4 million passengers would travel to and from Bangalore in 2020, but a boom in air travel meant that the passenger projection would have been reached in 2010 itself.

As against the initial forecast of 41,000 aircraft movements per year in 2010, the latest projection has increased to 1,06,000 movements per annum, forcing BIAL to re-design the project by merging the second phase of construction with the first phase, to be completed by 2010.

The Union cabinet, at its meeting, approved the signing of two agreements with the joint venture firm to modify the concession agreement to factor in changes in the project design. The projected cost, taking into account the redesigning of the project, would go up from Rs 1,411.79 crore to Rs 1,930.29 crore, an increase of Rs 518.5 crore which would be funded through additional debt.

The additional amount would be raised by BIAL through loans as well as advances from third-party service providers like those to be involved in cargo handling or fuel supplies and not through additional equity or state support. Of this additional amount, Rs 450 crore would be taken from lenders and Rs 68.5 crore from the service providers, raising the debt-equity ratio from 2.25:1 to 3.63:1, an official spokesperson said.

Under the new design, the total built-up area for the passenger terminal building would be increased to 71,000 square metres as against 55,850 sqm. The apron area for aircraft parking has been raised.

To accommodate 36 aircraft of the Boeing-737 category, the length of the taxiways as well as entry and exit to and from the runway have also been increased to accommodate enhanced aircraft movement.

The additional works due to the re-design would be bifurcated into two categories "� one to be awarded to existing contractors to maintain uniformity and the other to be awarded to third party contractors through open tender "� official sources said.

The original concession agreement between the government and BIAL was approved in January 2004 for the greenfield airport to be constructed at Devanahalli near Bangalore through a joint venture.

The agreement was signed in July that year, which was followed by other agreements including those on state government support and land lease.