AAI plans to raise $300 mn via ECB for capex funding

Hyderabad: Airports Authority of India is planning to raise about USD 300 million via the external commercial borrowing (ECB) route next fiscal to fund its capex plans aiming at doubling the current passenger-handling capacity of 345 million passengers per annum, a top official of the PSU said on Friday.

Speaking to reporters on the sidelines of the ongoing 'Wings India 2020,' an aviation-related event being held here, AAI chairman Arvind Singh said the airports operator would be spending Rs 5000 crore on capex for the next five years beginning this year.

"We are thinking of going for external commercial borrowings (ECB) at lower rates to fund our plans. Plus we get funds from the government of India under Udan scheme. They (Centre) have allotted Rs 4,500 crore to build airports under the Udan scheme. We will be going for the ECBs next financial year," Singh said.

The first tranche would be USD 300 million. The board has approved (the ECB proposal) a month ago, he said.

According to him, of the present 110 airports in the country, the AAI operates over 90.

The PSU is in the process of upgrading some of the airports which are building some greenfield aerodromes.

It is also in the process of converting underserved and unserved airports under the Udan scheme for which the Centre is extending financial assistance to make them operational.