Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

22-November-2012 20:22 IST

The Cabinet Committee on Economic Affairs today approved the revised cost estimate of Rs.2325 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 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.

The airport is likely to be inaugurated on 23rd January, 2012 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. Term loan assistance of Rs.986 crore i.e. about 42% of project cost has been considered at 10% 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 at 58:42 to fund the project.

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.

The number of passengers (embarking and disembarking) utilizing the terminal facilities over the project period is based upon the traffic projections. The total international passenger traffic handled grew @3% upto the year 2008-09, 8% upto the year 2012-13 and 10% thereafter. Similarly, domestic passenger traffic handled grew @(-) 3% in the year 2008-09, 12% in the year 2009-10, 15% in the year 2010-11, 18% in the year 2011-12 and 2012-13 and 15% thereafter.

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

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SH/SK

Revised cost approval for airport expansion establishes mixed funding and loan terms with capacity-based planning. Approval of a revised cost estimate and funding framework for modernization and expansion of Netaji Subhash Chandra Bose International Airport, Kolkata, including construction of an integrated passenger terminal. Funding combines internal resources and borrowings with specified term loan assistance at a fixed interest rate and defined repayment tenor including a moratorium; the internal-to-borrowing ratio is adjusted. The terminal is largely complete except one zone, and traffic-based capacity projections identify years when international and domestic handling capacities are expected to saturate.