While financiers refuse loan for Mumbai airport modernisation...
While financiers refuse loan for Mumbai airport modernisation...
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WINGS CLIPPED: Financiers refused to sanction an additional Rs 2,350 crore for the Mumbai airport project.
PIC/PRADEEP DHIVAR |
The ambitious makeover plan for Mumbai airport is facing stormy weather, with a consortium of financiers declining an application for additional debt of Rs 2,350 crore last week. Coupled with the economic slowdown, this may delay the project that was scheduled for completion by December 2010.
"We will not fund the additional requirement of the project," said an official from IDBI, which is leading the consortium funding the project.
Said Shashikant Hegde, CEO, Projects Today, a leading database on project investment, "Though the reason behind the denial of additional finance is unclear, the banks probably refused because of the fall in air traffic.
The delay in implementing the project could also have influenced their decision. I think the project will extend to well beyond 2011."
An MIAL official said, "The consortium gave MIAL a long-term debt of Rs 4,231 crore on the condition that it would bring in equity of Rs 1,200 crore and deposits against property of Rs 2,219 crore." MIAL recently levied an airport development fee to partially cover their loses.u00a0
The project has been given to the GVK group-backed consortium that includes the Airports Authority of India, Airports Company, South Africa and Bidvest.
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Phase I
Development of existing infrastructure (rapid exit ways and taxiways).
Status: Complete
Phase II
Modernisation of airport, construction of new domestic terminal u00a0building linking the domestic terminals 1A and 1B, demolition of terminal 2A in Sahar and construction of an X-shaped terminal building that will cater to domestic as well as international passengers.
Status: Work in progress 276 acres of land u00a0around the airport is still occupied by 80,000 u00a0slum dwellers |
Video: https://www.mid-day.com/news/2009/jan/100109-Mumbai-airport-makeover-plan-financiers-refuse-loan-Video.htm
