The Kempegowda International Airport in Bengaluru, India, has plans to undertake a massive Rs130bn ($1.8bn) expansion programme.
This expansion will see construction of a new terminal, a second runway, access roads and internal road infrastructure, and a multi-modal transport hub.
PTI quoted Bangalore International Airport Infrastructure Ltd (BIAL) CEO Hari Marar as saying that the second phase programme includes a component of Rs20bn ($284m) interest.
Construction costs of the terminal will be around Rs35bn ($497m).
The Phase 2 project will be funded in a ratio of 80% debt and 20% equity.
The complete equity will come through internal approvals from the firm, while the debt will be raised from banks.
Marar said that BIAL declared its dividends only twice, while it retained 92% of all the earnings in the last decade.
He added: “It means that the promoters have earned nothing for their investment as it has all been retained in the business with the specific purpose of funding the equity requirement for the expansion.”
The expansion project is expected to be completed by 2021. This expansion will offer jobs to 45,000 people.
Marar told PTI: “The terminal will be world-class in all respects, starting from its design, the processes, the people who manage it, the sustainable practices and its performances,” he said.
The terminal will make use of renewable energy, especially solar. It is also taking up measures to become self-sufficient with respect to its water requirements.