KA-AIRPORT

The Kempegowda international

airport here would undertake a massive Rs 13,000 crore

programme comprising a new terminal, a second runway, access

roads and internal road infrastructure, utilities and a

multi-modal transport hub, a top official said Thursday.

The Phase-2 programme involves Rs 13,000 crore, which

includes a component of Rs 2,000 crore interest, Bangalore

International Airport Infrastructure Limited (BIAL) Chief

Executive Officer, Hari Marar told reporters here.

The terminal cost itself is roughly about Rs 3,500 crore.

Marar said the entire project has to be funded in a ratio

of 20 per cent equity and 80 per cent debt.

While the entire equity comes through internal approvals

from BIAL, the rest has been raised through banks, he added.

Explaining about the equity coming through internal

approval, Marar said only twice the BIAL has declared its

dividends whereas it retained 92 per cent of all the earnings

in the last 10 years which have not been distributed to the

promoters.

"It means that the promoters have earned nothing for

their investment as it has all been retained in the business

with the specific purpose of funding the equity requirement

for the expansion," Marar said.

The expansion programmes, which would be completed by

2021would provide jobs to 45,000 people, an increase of

25,000 manpower from existing 20,000 employees.

Giving an insight into the T2 terminal, Marar said it

will be built at the "most affordable cost and in the most

responsible manner.

"The terminal will be world class in all respects -

starting from its design, the processes, the people who manage

it, the sustainable practices and its performances," he said.

He said there will be zero electricity consumption during

the day time as arrangements would be made to use renewable

energy, especially solar at the terminal.

The BIAL has also taken steps to be self sustained in

terms of its water requirements, he added.