AAI to move FinMin again for Rs 3,000 cr bond issue

State-run Airports Authority of India (AAI) today said it will soon approach the Finance Ministry afresh with the proposal to raise funds through a Rs 3,000-crore infrastructure bonds to finance modernisation of non-metro airports.

"The ministry has so far not agreed to our infrastructure bonds .... So we will again pitch for its sanction," AAI chairman V P Agarwal told reporters on the sidelines of the Capa India Aviation summit here.

The PSU has long been requesting the government to allow it raise Rs 3,000 crore through bonds. "We require funds to upgrade 2-tier and 3-tier airports or the secondary airports in the metros. Since these airports are not viable, we need low-cost financing," Agarwal said.

On the dues from the grounded Kingfisher Airlines, Agarwal said the airline's proposed revival plan should have the consent of the AAI. "Kingfisher will have to talk about clearing of our dues in the plan. And it should be acceptable to us as well."

Stating that dues have increased to Rs 300 crore, Agarwal said he will esnure that Kingfisher submits a plan which reflects the payment schedule of AAI dues. "Kingfigsher's dues have mounted to such a high level....which is not healthy and we have asked them to dilute these dues. So, when the airline submits its revival plan to the DGCA, that (payment schedule) should also reflect in the plan," he said.

AAI has asked the carrier to vacate the two hangers at Chennai and Kolkata airports, he said. "In any case, their licences have been cancelled and they are not flying. There are takers for these hangers and if they are given out to them, that will get us money," he said.

On the government's plan to abolish airport development fee (ADF) from January at the Delhi and Mumbai airports, the largest airports in the country, he said it will have some impact on AAI revenue.

"We have given our views to the regulator Aera that we can infuse equity if asked for. The ADF....will have an impact and we are working it out," he said.

While scrapping ADF which was levied on passengers to meet cash flow requirements before completion of an airport upgrade project, the aviation ministry had asked AAI to infuse additional equity of Rs 288 crore in the Mumbai airport and Rs 102 crore in Delhi airport, against its 26 percent share in the two joint ventures.