The government on Thursday enabled Bangalore International Airport Ltd to make changes in the project design so as to be able to cater to 8.4 million passengers by 2010 against the earlier target of 2020.
The Cabinet approved amendments to the concession agreement with BIAL, allowing the joint venture firm to re-design the airport under construction at Devanahalli.
Traffic estimates in 2000 had shown that 8.4 million passengers would travel to and from Bangalore in 2020, but a boom in air travel meant that the passenger projection would have been reached in 2010 itself.
As against the initial forecast of 41,000 aircraft movements per year in 2010, the latest projection has increased to 1,06,000 movements per annum, forcing the BIAL to to re-design the airport by merging the second phase of construction with the first phase to be completed by 2010.
The Cabinet, at its meeting on Thursday, approved the signing of two agreements with the joint venture firm to modify the concession agreement to factor in changes in the project design.
The projected cost, taking into account the redesigning of the project, would go up from Rs 1,411.79 crore (Rs 14.11 billion to Rs 1,930.29 crore (Rs 19.30 billion) -- a hike of Rs 518.5 crore (Rs 5.18 billion) which would be funded through additional debt.
The additional amount would be raised by BIAL through loans as well as advances received from third-party service providers like those to be involved in cargo handling or fuel supplies and not through additional equity or state support.
Of this additional amount, Rs 450 crore (Rs 4.5 billion) would be taken from lenders and Rs 68.5 crore (Rs 685 million) from the service providers.
Following this, the debt-equity ratio would rise from 2.25:1 to 3.63:1, the spokesperson said.
After re-designing the project, the airport would be able to handle air traffic projected for 2020, 10 years earlier, official sources said.
Certain provisions of the concession agreement were required to be amended due to the re-designing to reflect theenhanced scope of work and specifications.
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