New Delhi air terminal to cost Rs 3,500 crore

GMR Infrastructure, the company which won the contract to modernise the Delhi and Hyderabad airports, is planning to come out with an IPO next week. The company has to build the new terminal by 2010, which will cater to 30 million passengers.

Its chairman G M Rao says that the master plan is ready and the work on the project will start by December. He says that the project will cost about Rs 3500 crore.

Excerpts from CNBC-TV18's exclusive interview with G M Rao:

What kind of investment, the company is looking at for the airport construction plans and how do you plan to raise that money?

By 2010 we have to build new terminal, which will cater to 30 million passengers. The approximate amount will be Rs 3500 crore. We have to build this new terminal building that

will be a combined airport for both international and domestic. The master plan is ready and maybe we will start this project by December, as we will have to complete that before 2010.

You mentioned that there are three annuity projects out of which two are generating revenues. If you can give us what are the revenue streams and how much you are getting?

We are getting approximately Rs 70 crore. This will be for 15 years. Basically, we have a mix of revenues. We have fixed revenues and market driven returns. Fixed revenues are annuity projects. Our growth revenue is from our power plant. The other project is a toll project at Hyderabad airport. That is a market driven return.

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