Rs 2000 cr facelift for Nagpur Airport

Maharashtra Airport Development Company (MADC), the special purpose vehicle of the state government, will float a new company to develop Nagpur Airport at an estimated cost of over Rs 2,000 crore.

In the new company, private players will be permitted to own 64 per cent of the equity, MADC will hold 26 per cent in the form of land and 13 per cent will be with Airports Authority of India (AAI).

Confirming this, MADC vice-chairman and managing director RC Sinha said: "MADC will float the new company once the airport has at least 50 flights landing and takeoff in a day." Currently, Nagpur Airport operates 26 flights a day.

Nagpur Airport, spread over 1,200 hectares, will be an international hub with ultimate space for parking 50 aircraft in the terminal and 50 aircraft remote.

"The runway will be extended to 4000X60 meters to meet international standards from the existing 3200X45 meters. In addition, the project has an option to have one more airstrip with 4000X60 meters," Sinha said.

He said airport has a modular design programme for 30 years. But taking the robust growth in passenger and freight traffic, MADC is planning to reduce it by 20 years.

"The airport will construct night parking and hangar facilities with provision of regular maintenance options. Those airlines, which are struggling to get parking space, will be attracted to Nagpur," Sinha said.

Meanwhile, Chennai-based SICAL Logistics will set up a rail-road terminus at an estimated cost of Rs 200 crore to link the airport with other places.

MADC will also construct a special sorting centre and bonded customs area for cargo terminal, enabling airlines to redistribute cargo freight. Indian Airlines has decided to opt Nagpur as hub airport.

MADC, constituted by Maharashtra government for implementation of Multi-modal International Hub Airport at Nagpur (MIHAN) project, will sign an agreement shortly with AAI for operating Nagpur Airport.

Initially, Nagpur Airport will be run by a special purpose vehicle floated by MADC and AAI with an equity stake at 51:49 per cent basis.

"The special economic zone (SEZ) coming up as part of MIHAN project will boost traffic of passengers as well as cargo," Sinha added.

Recently, MADC has raised Rs 300 crore from financial institutions, led by Vijaya Bank, and received Rs 80 crore as operating funds from the state government.