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The Chief Minister, Mr N. Chandrababu Naidu, talking to Datuk Dr Aris Othman (left), Chairman of the Malaysian Airports Holdings, after signing an MoU for the International Airport at Shamshabad. Sixth from left is the Chairman of GMR, Mr G.M. Rao, and other members of the delegation that signed the MoU. - P.V. Sivakumar

Hyderabad , Sept. 30

THE Rs 1,200-crore greenfield Hyderabad International Airport project moved one step ahead with the shareholders agreement and the State support pact inked here on Tuesday between the GMR - Malaysia Airport Holdings Berhard consortium, Airports Authority of India and the Andhra Pradesh Government.

Mr J. Rambabu, Special Chief Secretary, Government of Andhra Pradesh, said the airport to be developed near Shamshabad about 30 km from here, will act as an engine of Andhra Pradesh's economic growth by providing direct access to passengers from various international cities and benefit exporters, importers and other producers with efficient cargo handling and required storage and logistics.

These agreements were inked today in the presence of the Chief Minister, Mr N. Chandrababu Naidu, in the Assembly precincts. The State Government had handed over the development of the project to the Indo-Malaysian consortium consisting of GMR Infrastructure Ltd and Malaysia Airports Holdings Berhard through an international competitive bidding process. Following this, a joint venture company— Hyderabad International Airport Ltd, was incorporated.

The Major Industries Minister, Mr K. Vidhyadher Rao, told Business Line that this is the first such agreement signed in the country with a private developer for an airport and will pave the way for achieving financial closure for this major project.

"We have set a tight deadline and as per plans the project will be ready by 2006, in time for the proposed Formula One race," he said.

The Director of GMR Infrastructure, Mr Kiran Kumar Gandhi, said, "Our abilities in successful development and operation of world class infrastructure projects shall ensure implementation of the new international airport to world class standards and make the airport an important landmark in Andhra Pradesh's Vision."

The Chairman of MAHB, Mr Tan Sri Aris, in a statement said, "We are proud of our association in this dream venture. We shall provide our experience and expertise for the success of the new international airport."

The first phase of the project would be completed by September 2007 and have capacity to handle five million passengers and 1,00,000 tonnes of cargo.

The State Government has already acquired 5,000 acres for the project and the necessary clearances from Andhra Pradesh Pollution Control Board and the Ministry of Environment and Forests. The construction will begin in September 2004.

Mr V.D.V. Prasada Rao, Member (Finance), who signed the agreement on behalf of the Airports Authority of India, said the new international airport would benefit from the new policy framework announced by the Centre for the greenfield airports and as also the framework for development of private airports.

The agreement provides for 74 per cent equity contribution from GMR-MAHB consortium and 13 per cent each from the Airports Authority of India and the Andhra Pradesh Government. The State Cabinet, earlier this year, had cleared a package to make this infrastructure project financially viable.

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