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Cabinet revises Kolkata airport overhaul budget

Posted on Nov 23, 10:17AM | IBNS

The Cabinet Committee on Economic Affairs Thursday approved the revised cost estimate of Rs 2,325 crore for the modernization and expansion of Netaji Subhash Chandra Bose International Airport, Kolkata (NSCBI) including construction of an integrated terminal building.

Earlier, the CCEA had considered the proposal of the Ministry of Civil Aviation in July 2008 and approved it for an amount of Rs.1942.51 crore.

Thereafter, based on award of certain packages of work, by competitive bidding and review of scope of certain works, the project cost increased to Rs.2325 crore.

According to official sources, the airport is likely to be inaugurated on Jan 23, 2013 on the birthday of Netaji Subhash Chandra Bose.

The revised estimated cost of the work is Rs.2325 crore and the same will be met through internal resources and borrowings, said CCEA.

"Term loan assistance of Rs.986 crore i.e. about 42 percent of project cost has been considered at 10 percent interest rate per annum with nine years repayment period including moratorium period of two years. The ratio between internal resources and borrowings has been revised in 58:42 to fund the project," CCEA noted.

"Work on the Integrated Passenger Terminal Building was completed in August 2012 except Zone-I of the building, which forms the extreme and of the domestic portion of the integrated terminal. The zone-I is expected to be completed by December, 2012."

According to official sources, the number of passengers (embarking and disembarking) utilizing the terminal facilities over the project period is based upon the traffic projections.

According to statistical data, the total international passenger traffic handled grew at the rate of 3 percent upto the year 2008-09, 8 percent upto the year 2012-13 and 10 percent thereafter. Similarly, domestic passenger traffic handled grew at the rate of 3 percent in the year 2008-09, 12 percent in the year 2009-10, 15 percent in the year 2010-11, 18 percent in the year 2011-12 and 2012-13 and 15 percent thereafter.

The planned annual handling capacity of 4 million passengers on the international side of the integrated terminal is expected to get saturated in the year 2023-24. Similarly the domestic side having an annual handling capacity of 16 million is expected to get saturated in the year 2015-16, informed officials.