AAI to infuse Rs 1,400 crore capex for modernising Chennai, Kolkata airports

New Delhi: The Airports Authority of India (AAI) is lining up investments of upto Rs 1,400 crore in expanding Chennai and Kolkata airports. This came, after the Centre junked an earlier plan to develop six airports through a public private partnership (PPP) model. A source at AAI said opposition from the respective airports, from Parliamentary committees led to scrapping of PPP plan.

All investments in at least these two airports will now have to be made by AAI itself and sources said the Authority may raise debt to fund expansion of these two airport projects. Chennai will get a brand new look with over Rs 1,000 crore being pumped in to expand and seamlessly integrate domestic and international terminals at the airport and also provide connectivity with the metro rail project.

``The problem in Chennai has been that AAI was able to complete only part one of the two-phase project for modernising the airport before the Government decided to rope in the private sector for the job. But now there is a change in thinking in the Government and AAI will complete the project of creating a seamless travel experience for Chennai airport users,” an AAI source said.

He also said an ATC tower needs to come up in Kolkata which may need upto Rs 400 crore investment.

AAI is working to appoint a project consultant for completing the modernisation of Chennai airport. At the moment the plans are to mobile the funds required for modernising Chennai from internal resources, the source said.‎ AAI has already pumped in over Rs 2,000 crore into Chennai airport.

AAI has also appointed RITES to undertake a study on how city side development can be done around airports at Lucknow, Tirupathi and Raipur. “We could look at better vehicle parking facilities or setting up aviation related infrastructure,” the source said.‎