AAI keen to float infrastructure bond to finance development projects | india | Hindustan Times
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AAI keen to float infrastructure bond to finance development projects

The Airports Authority of India is keen to float Rs 5000 crore in infrastructure bond to meet the requirements of the ongoing development projects.

india Updated: Sep 22, 2009 22:22 IST

The Airports Authority of India (AAI) is keen to float Rs 5000 crore in infrastructure bond to meet the requirements of the ongoing development projects.

"We want to float infrastructure bond of Rs 5,000 crore and a proposal in this regard has been sent to Union Finance Ministry after discussion with the related department at the Centre," AAI Chariman VD Agarwal told reporters in Kolkata.

Agarwal, who was here to oversee the progress of modernisation programme of the NSC Bose International Airport, said the central clearance for the project was awaited.

He said the AAI would go for market borrowing if it did not get clearance from the Centre. "But infrastructure bond is our first preference and we are hopeful of getting central clearance."

The Chairman said the proposed bond would be floated for a seven-year period at 4 per cent interest.

He said for the first time the AAI would lease out land in areas adjacent to airports in the country to private parties for construction of hotels and other airport-related projects which would be implemented through the PPP model.