Promoters will invest Rs 100 crore in each airport
Bangalore, April 2 Hyderabad-based majors Maytas Infra and NCC Infra on Wednesday signed agreements with the Karnataka Government to develop greenfield airports at Shimoga and Gulbarga.
The promoters will invest Rs 100 crore in each airport to be developed on BOT basis, according to Mr Teja Raju, Vice-Chairman of Maytas Infra Ltd.
Two SPVs, Shimoga Airport Developers Pvt Ltd and Gulbarga Airport Developers Pvt Ltd, would execute the project in the next 24 months. The State has allotted 650 acres for each airport.
Mr Raju earlier signed the pact with Mr Renuka Prasad, Deputy Secretary, Infrastructure Development Department.
Maytas, the Nagarjuna Construction Company-owned NCC and their Austrian partner, Vienna International Airport through its arm, VIE India Project Development and Holding LLC, won the bids called by the State Government some months ago.
Maytas Infra and NCC Infra will each hold 37 per cent and VIE 26 per cent in the venture. The airside and landside development includes construction of the runway, terminal, ancillary buildings and other infrastructure. An immediate investment of Rs 50 crore would be made into each airport and later, Rs 30 crore each on developing the city side over seven years, according to Mr M. Ramesh, Vice-President, Maytas Infra. The project was expected to break even in 6-7 years.
Mr Raju said tourism and business travel would initially drive air traffic to these tier-two cities. The airports would grow from three flights a week initially to 10-12 flights over eight years, Mr Ramesh said.
Post-construction, these cities would see an all-round development in and around the airport, improved road connectivity, facilities for VIP movements, construction of hotels, convention centres, business, corporate and technology parks, recreation facilities among others. These would further improve the local lifestyle and generate large employment opportunities.