BIAL to raise Rs 10,200 crore for Bengaluru airport development: Where this money will be used

The BIAL, owned by Fairfax which holds more than 50% stake, has raised the fund from through loans from State Bank of India and Axis Bank.

BIAL: Terminal 2 is an integrated Terminal which will serve international and domestic passengers. Photo: BIAL

Bengaluru International Airport Limited (BIAL) is raising Rs 10,200 crore through a syndicated loan facility for infrastructure development, report The Economic Times. The BIAL, owned by Fairfax which holds more than 50% stake, has raised the fund from through loans from State Bank of India and Axis Bank. The BIAL will construct two four-lane flyovers, two new roads over bridges to enhance access to the airport. Besides, it is also planning to develop a new terminal, a second runway, more roads and ancillary utilities, said the report.

The report quoted a BIAL spokesperson saying that the total estimated cost of the development projects is Rs 13,300 crore of which Rs 10,200 crore has been raised by loans. The loan interest rate is linked to the MCLR of the respective banks and the loan maturity period is 15 years.

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The construction work for the second terminal at the airport is already underway and the BIAL is said to have planned an interim terminal for operations. The interim terminal will be a part of the operational terminal 1. The new Terminal 2 will have features like:

* State-of-the-art check-in hall, reflecting the fact that check-in increasingly occurs prior to arrival at the airport and through personal digital devices, coupled with self-service baggage consignment.

* Streamlining of the emigration and immigration processes based on increasing use of biometrics and automation.

* Intensification of security screening and an attendant increase in footprint, which may be offset by advances in sensing technology that facilitates more accurate screening and higher throughput, making the process more pervasive but less invasive.

* The configuration of the central retail/dwell area with easy, direct access to the contact gates and bus hold-rooms, would allow flexibility to implement a call-to-gate operation.

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Terminal 2 is an integrated Terminal which will serve international and domestic passengers. T2 is planned to be developed in two phases, 25 mppa capacity and 45 mppa capacity. Total built-up Area of Phase 1 is 2,54,230 sqm and Phase 2 is 4,40,550 sqm.

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