The state-owned Airports Authority of India (AAI) plans to pump in between Rs 250 crore and Rs 300 crore as additional equity in Mumbai International Airport Ltd (MIAL).
AAI currently has equity of about Rs 600 crore in MIAL.
“The equity is being increased as the project cost has increased,” a senior official said.
The nod for this proposal, expected later this week at AAI’s board meeting, could see the state-owned airport operator raise its equity in some other projects too.
AAI holds equity in several public-private partnership (PPP) projects, including the airport modernisation programme at Delhi, Hyderabad and Bangalore. Sources, however, declined to speculate on when or by how much AAI will increase its equity in other airport projects.
Mumbai International Airport is a public-private partnership venture between GVK, AAI and Airport Company South Africa, which owns and operates 10 airports in that country. GVK leads the consortium with a 50.5 per cent stake, while AAI holds 26 per cent.
In November 2007, the original project cost was revised to an estimated Rs 9,802 crore, mainly to provide for a new integrated terminal, relocation of existing international terminal and other existing structures to provide for more space on the airside and consolidation of terminals 2B and 2C to pave the way for development of an integrated terminal.
In its submission to the Airports Economic Regulatory Authority to determine the levy of development fee, MIAL said the cost was revised to Rs 10,453 crore in October 2010 on account of certain mandated projects.
Further, it submitted that due to delay in handing over certain areas for construction, the schedule of the project got extended by 17 months and with addition of certain new works the project cost was further revised to Rs 12,380 crore.