AAI to lease out land for funds
Under pressure to generate funds for its on-going Rs 7,750-crore infrastructure projects at 37 airports in the country, the AAI has chalked out a plan to add to its revenue base by leasing out around 300 acres on the city side of 10 airports, report Manish Tiwari and Samiran Saha.autos Updated: Jan 30, 2010 01:17 IST
Under pressure to generate funds for its on-going Rs 7,750-crore infrastructure projects at 37 airports in the country, the Airport Authority of India (AAI) has chalked out a plan to add to its revenue base by leasing out around 300 acres on the city side of 10 airports. The surplus land will be used for the setting up of hotels, parking lots and cargo and commercial complexes.
“We will be inviting tenders from private parties in the next three months and intend generating substantial revenue through upfront fee and lease rentals,” a top civil aviation ministry official said.
The land would be given on a 30-year lease that may be extendable to another 30 years.
The airports are: Ahmedabad, Jaipur, Vishakhapatnam, Indore, Kolkata, Lucknow, Amirtsar, Hyderabad, Guwahati and Bhubneshwar.
Initially, the AAI would develop the city side of only 10 airports, but later the plan is to lease out surplus land available at other 27 airports as well for similar purposes.
“Our ultimate aim of the AAI is to increase our revenue and reduce the burden on passengers, who are paying fees for the infrastructure development at the airports,” the official said.
The AAI has planned to invest Rs 1,940 crore on infrastructure projects at the Kolkata airport, Rs 2,000 crore at Chennai, besides Rs 290 crore at Ahmedabad, Rs 245 crore at Thiruvananthapuram, Rs 330 crore at Goa, Rs 250 crore at Amritsar, Rs 77 crore at Chandigarh, Rs 100 crore at Guwahati, Rs 147 crore at Mangalore, Rs 130 crore at Madurai, Rs 135 crore at Raipur, Rs 125 crore at Jaipur, Rs 117 crore at Vadodara and Rs 110 crore Varanasi.