GMR Hyderabad International Airport Ltd, (GHIAL) which is developing the international Greenfield airport at Shamshabad, has executed financial agreements for borrowing Rs. 718 crore from three banks: Abu Dhabi Commercial Bank, Andhra Bank and Vijaya Bank here on Friday.

This investment is for creation of additional facilities, common fuel farm and business hotel in the airport. The extra amenities being created include more aircraft parking stands, rapid exit taxiways, full length parallel taxiway and additional office space for airlines, extra cargo terminal space, additional car parking for passengers and public, extra immigration desks, self-check-in kiosks and bus gate lounges. The money would also be used to finance installing additional security equipments for meeting the safety standards of BCAS.

The company had initially planned to handle 7 million passengers but decided to augment capacity to 12 million passengers per annum keeping in view the tremendous growth in air traffic from Hyderabad in the last few years. As a result, the total project cost has gone up to Rs 2,478 crore from the earlier estimated figure of Rs 1,760 crore and has been approved by the board of directors.

While the rupee term loans of Rs 200 crore are being extended by Andhra Bank and Vijaya Bank, Abu Dhabi Commercial Bank would extend the remaining Rs 518 crore in US Dollars in the form of external commercial borrowing (ECB). The ECB has a repayment moratorium of two years from the date of commencement of the airport operations, and the repayment schedule is spread over 14 years thereafter.

Speaking on the occasion, Mr. T. Srinagesh, COO, GHIAL, said: “We are happy to have Abu Dhabi Commercial Bank, Vijaya Bank & Andhra Bank on board for funding of additional facilities at the new airport. The money would be used to achieve our business goal of continuously meeting the demands of services for increased passenger growth.” He added that the work is progressing at a rapid pace and the airport would take-off as per schedule in March 2008.

Sourced From: GMR Group