Partha Ghosh was the prime mover behind the incorporation of Bengal Aerotropolis Projects Ltd (BAPL) with crucial investment from Changi Airport, Singapore, in 2008, to set up the country’s first airport-city project in West Bengal.

With ₹1000 crores of investment, the state’s first private airport near Durgapur is now six-months away from opening doors to passengers. The Managing Director of BAPL elaborated on the journey and the road ahead.

Edited excerpts:

Why did you plan a private airport in a tier-II city? Any previous association with aviation?

I had nothing to do with the aviation sector. I was busy in real estate development in Durgapur, when I came across a “RK Swamy BBDO Market Potential Value” report. It ranked the 50 km Durgapur-Asansol industrial zone as the 14th most prominent urban agglomeration in the country. Durgapur was the only city among the first 27 urban centres without an airport. Today, the region contributes 5 lakh passengers a year to either Kolkata or Ranchi airports, both located 200 km away. They are mostly travelling to Mumbai and Delhi. I’m hopeful of adding another 5 lakh passengers once the low-cost carriers start operations at our airport.

The project took off at the peak of anti-land acquisition movement in West Bengal. How did you manage to get the land?

Our initial plan was to acquire nearly 2,500 acres through private purchases. Accordingly, we started direct negotiation with nearly 30,000 farmers armed with a sound rehabilitation and resettlement (R&R) plan. The focus was on acquisition of only mono-crop or non-agricultural land, and through consensus.

The then State Government initially played the role of facilitator. After Changi picked up stake in BAPL, the State decided to go for land acquisition to pace up implementation. However, the consensus building exercise helped us avoid any major resistance. Final acquisition was completed in 2010. Keeping in mind popular sentiment, we also scaled down requirement to approximately 2,000 acres.

What was unique in the R&R package?

Apart from the price of land, we also compensated landowners for loss of livelihood. Those holding over a bigha (0.33 acre) were offered upto six cottah (33 decimal a cottah) of developed land within the airport-city. Nearly 35-40 per cent of the land losers were benefited by the policy.

Small farmers (holding less than one bigha each) were offered annuity package (over five years) as livelihood support. To ensure future employability, one member of each affected family was given vocational training through the Industrial Training Institute (ITI) at Durgapur.

We also compensated the sharecroppers and landless labourers.

What’s the status of the project now?

The construction of the airport was complete in April 2013 at approximately ₹650 crore. But flight operations couldn’t begin due to delay in removal of the electricity transmission network, running across the runway, by the State utility. The deadlock was finally broken a couple of months ago. Work is now in progress to dismantle the transmission wires. The airport should be operational by December.

At the city side, we are selling developed land for residential, industrial and commercial use. A number of companies including an adhesive major and a national paints maker are setting up warehouses.

One private hospital and two major public schools have booked space. We are expecting to attract a few hotel majors soon. We will step up city-side development once the airport is operational.

Keeping the airport idle must have proved costly?

Yes. We declared the airport project complete in 2013 and started repaying lenders.

Naturally, loss of potential revenue pinches us. However, cash-infusion by stakeholders, low debt-equity of 1:1.2 and returns from land sales keep us going. BAPL also proposed another airport-city in Ludhiana. The preparatory work for the Ludhiana project is on. Implementation will pick up next year, once the Durgapur airport is operational.

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