Singapore-based Changi Airports International (CAI) has expressed interest to increase its stake in the upcoming airport city project in West Bengal to about 51%.
Changi Airport India, a wholly owned subsidiary of Changi Airports International (CAI), currently owns 26% stake in Bengal Aerotropolis Projects Ltd (BAPL), which is executing the airport city project at Andal in Bardhaman district.
“Changi has expressed their willingness to further increase their stake in the airport project here,” West Bengal fiance minister Amit Mitra said.
West Bengal urban development minister Firhad Hakim recently met Changi officials to discuss the matter.
“They have indicated that they are increasing their investment from 26% to about 51%,” he said.
Earlier, Changi CEO Lim Liang Song understandably had mooted the stake increase proposal during his meeting with West Bengal Industry minister Partha Chatterjee in October.
Changi, however, refused to comment on the development.
“As a policy, we do not comment on discussion, we may have from time to time with government bodies and officials and other corporate bodies,” a spokesperson of Changi Airports International (CAI) told Business Standard.
Changi being the lone airport operator among the all the promoters of BAPL, West Bengal government too wants the Singapore-based company to raise its stake as it would instill confidence in the project.
“There are instances of promoters of BAPL engaging in legal tussle, which had hurt the image of the project. If Changi increases its stake, it will certainly instill further confidence in the project,” a government official said.
Apart from Changi, other current promoters of BAPL includes Infrastructure Leasing and Financial Services Ltd(IL&FS), Pragati Social Infrastructure Development (PSIDL), Pragati 47 Development, Lend Lease Company(India) and Citystar Onfrastructures. BAPL refused to share the details of the present share-holding pattern in the special purpose vehicle (SPV).
West Bengal Industrial Development Corporation (WBIDC) had acquired and handed over 1,818 acres of land to the BAPL for the project during Left regime. Although the developers have failed to meet the October 2012 deadline to complete the first phase of the work, that includes airport and allied infrastructure, according BAPL CEO Subrata Paul, the airport would be ready by the end of this month.
BAPL is also in talks with domestic airlines to make the airport operational.
“The airport is expected to be operational by first half of 2013,” a Changi spokesperson said.
