Bengal’s first private airport to begin operations by December

After a long wait, the Bengal Aerotropolis Projects Ltd (BAPL)-promoted airport at Andal, near Durgapur, is finally on course to start domestic flight operations in the next six months.

Though declared ready for commercial operations in April 2013, delay on the part of State electricity distribution utility in removing high tension transmission lines running across the airstrip delayed flight operations.

Named after Kazi Nazrul Islam – a famous Bengali poet – the only private airport in the region will be aided with an airport city (Aerotropolis), spreading over 2,000 acres, in the lines of Changi Airport of Singapore. Changi is the single largest stake holder (26 per cent in BAPL).

According to Partha Ghosh, MD, the company has already invested nearly ₹650 crore in building the airport and approximately ₹350 crore on city side development. Ghosh is one of the three lead-promoters of BAPL, holding approximately 18 per cent each.

Admitting that the delay in starting flight operations impacted the company’s revenue potential for last one year, he said the problem was set to be resolved.

The electricity lines could not be shifted in time, due to land acquisition issues in the alternate route.

To strike a solution, the State Government now awarded a contract for laying underground cables across the airstrip. “Nearly, 50 per cent of the over transmission wires have been removed. We expect the flight obstructions to be fully removed in the next two months,” he told Business Line . This should help BAPL to approach the Directorate General of Civil Aviation (DGCA) for final clearance. BAPL will invite the airline operators in a meeting to finalise the flight operations. Sources said that a State-owned and a private airline company had envisaged initial interest to start operations to Delhi and Mumbai.

To ensure economic viability of the project West Bengal Government recently offered three-year sales tax remission on ATF (aviation turbine fuel) sales through the airport.

ATF constitutes nearly 45 per cent of operation cost of airlines. The sales tax waiver therefore should make the airport a lucrative station for refuelling.

To make the proposition more attractive, BAPL may offer night parking at one-third the cost of Kolkata airport, located some 200 km away.

“Fuel tax waiver, coupled with low parking charges, should make the airport enticing enough for airlines,” Ghosh added.