Infrastructure Development Department
Infrastructure Development Department Infrastructure Development Department Infrastructure Development Department
Infrastructure Development Department Infrastructure Development Department Infrastructure Development Department
Infrastructure Development Department Infrastructure Development Department Infrastructure Development Department

Bangalore International Airport

Airport Projects Railway Projects Port Projects PPP Projects

Bangalore International Airport

Preamble

The Government of India (GoI) in the Ministry of Civil Aviation (MoCA) had approved in the year 1994, the proposal of the Government of Karnataka (GoK) to establish a new world class, modern international Airport for Bangalore, near Devanahalli by private sector investment. The GoK designated Karnataka State Industrial Investment & Development Corporation Ltd (KSIIDC) as the nodal agency to assist in conceptualizing and implementing the said International Airport Project.

Even though, GoI had put in place a policy on Airport Infrastructure in December 1997, the Legal Framework namely, the Airports Authority of India Act and the Aircraft Act & Rules did not clearly provide for building and operation of Indian Airports by Private companies. After addressing these issues, changes were incorporated to amend the Airports Authority Act, which has been approved by the Lok Sabha and Rajya Sabha, in the last session.

Based on discussions held amongst the representatives of GoI in the MoCA, Defence, Law & Justice, Airport Authority of India (AAI), GoK, KSIIDC and others, Certain basic issues and parameters of the Project were agreed between GoK and GoI. Accordingly, a Memorandum of Understanding (MoU) was signed between KSIIDC and AAI, on 3rd May 1999. This MoU envisaged the Project to be established on a commercial, non-recourse finance basis where in the Project would be implemented through a Joint Venture Company (JVC), in which KSIIDC and AAI would hold 26% equity and the balance equity of 74% by a Joint Venture Partner (JVP) to be selected on a competitive basis.

A Detailed, transparent and elaborate process to select JVP was put in place by the Steering Committee (envisaged in MoU) comprising senior officers of MoCA, AAI, KSIIDC and GoK. The selection process of JVP which commenced in May 1999 ultimately concluded in January 2002 with the signing of Shareholders Agreement (SHA) between KSIIDC, AAI and the selected JVP namely, Consortium lead by Siemens of Germany with partners Unique Zurich Airport of Switzerland and Larsen & Toubro of India. The SHA outlined the inter-se relationship, Management responsibilities and the manner that the International Airport would be built, operated and maintained within the agreed specifications and best parameters.

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Bangalore International Airport Limited (BIAL)

The JVC under the name of BIAL was set up in January 2001 to develop, build operate and maintain the Airport. At present, the Board of Directors of BIAL has 14 Directors, 5 representing the State Promoters (KSIIDC-3 and AAI-2) and 9 representing the private Promoters. A senior executive of Unique Zurich Airport has been appointed as the Chief Executive Officer. BIAL has established a fully functional office at Bangalore. BIAL will have the following equity structure.

State Promoters Private Promoter
KSIIDC 13% Siemens  40%
AAI                  13% Unique Zurich Airport 17%
    Larsen & Tourbo Ltd. 17%
  26%   74%

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Status of the Project

Over a period of 18 months, BIAL had fully developed the project. Master plan – a vision document for the phased development of the Airport over the next 50 years with the expected traffic growth. Traffic forecasts have been reviewed to reflect the latest developments in the air traffic pattern. Detailed specifications, architecture and engineering designs for the initial phase have been frozen. BIAL, for this purpose, had engaged several international consultants such as Kaufmann von der Meer as Architects, Dorsh Consult as Master Planning Engineers, Lufthansa Consult for traffic review, etc., Discussions have been held with Bureau of Civil Aviation Security, Customs, Immigration, Air Traffic Control and other authorities in India to integrate their requirements in the design.

A Business Plan based on sound economic criteria and Financial Model has been developed. EPC Bids have been received, evaluated and finalized by a specially constituted EPC Negotiation Committee duly assisted by reputed Indian and International Independent Consulting Engineers.

ICICI Bank appointed as the Financial Arranger by BIAL has sanctioned the entire debt required of Rs.1,164 crores for establishing the project. As per the current indications, the estimated Cost of the Project (initial phase) would be Rs.1930.29 crores.

ICICI has been designated as the Financial Arranger.

Financial Closure has occured on 23-06-05.

Civil Works of the Airport has commenced on 02-07-05.

Tentative airport opening date is fixed as April 2008 i.e. 33 Months from the date of commencement of civil works (July 2005).

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Status of Land & Peripheral Infrastructure

About 4262 acres of land has been assembled for the project and the same is in possession. 3884.5 acres of land is handed over to BIAL for the project. Although 11 villages are involved in the land acquisition process, only 2 villages having 110 families are being relocated, to a near by area about 9 Km from the proposed Airport. The GoK has approved and sanctioned a Rehabilitation & Re-settlement (R&R) scheme under which free residential sites have been allotted to the affected families. The R&R colony has also been developed with water supply. Power supply, road connectivity, school, temples, play ground, etc.

Work on widening the NH-7 between Bangalore City and Devanahalli into six lanes by NHAI is under progress and would be completed well before the Airport commences operation. A trumpet interchange at the junction of NH-7 and the Airport branch-off has been planned to ensure smooth and uninterrupted flow of traffic. The GoK has requested NHAI to take up this work under the NHDP as part of its above package involving widening of the NH-7.

GoK through BWSSB has proposed to provide the required water for the Airport, both during construction and operational phase. Work on laying the water pipelines from GKVK Reservoir/Yelahanka up to the Airport site is completed.

GoK through KPTCL has established a new 220/66KV substation near the Airport to supply reliable and good quality power to the Airport. 

A Local Planning Authority (BIAAPA) has been constituted to effectively plan and oversee all developmental activities in the vicinity of the Airport site. To administer the areas surrounding the airport effectively, the GoK is considering a new Civic body to provide and monitor the required civic amenities, before the airport is fully established.

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The Following Agreements have been Signed :

1. Co-ordination Agreement between GOI & GOK

2. Share Holders Agreement

3. Operation & Management Agreement

4. Concession Agreement between GOI & BIAL

5. CNS / ATM Agreement

6. State Support Agreement

7. Land Lease Agreement

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Airport features - Initial Phase

Annual capacity Passengers 8.5 Million
Cargo Handling Capacity 140,000 tonnes
Project Cost Rs.1930.29 crores approx.
Total sital Area

3884.254 acres approx.

Terminal Area 70,634 Sq.Mtrs
Runway numbers One
Runway Length & Width 4000 Mtrs X 60 Mtrs, ICAO Code 4E
Apron Area 179,800 Sq. Mtrs
Aircraft Stands 37
Airport Lighting Category 1 at both 27 and 09 Ends
Check-in Counters 54
Gates 7
Aero Bridges 8

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