The Airports Authority of India (AAI) will issue tax-free bonds worth INR 1,000 crore this financial. It also expects that work on 15 small airports would begin this year. The amount realized (from bonds) will be used to finance the development of small airports. People investing in such debt instruments will be exempted from income tax on the interest earned. These bonds are normally for a longer period, say, 10 years, and can then be bought and sold in a stock market just like a share. The Finance Minister, in his Budget speech, had said that institutions can issue bonds up to INR 50,000 crore. AAI would take up the development 51 new low-cost small airports. It was also decided that 8 greenfield airports would be awarded this year in public-private partnership (PPP). The issue of the operationalisation of PPP at Chennai and Kolkata airports was under discussion. The investor or consortium of investors is likely to be allowed to get over 51% share in both the airports. The PPP model could be like Delhi airport, where the GMR-led consortium holds 74%, while AAI has 26% equity. AAI gets a share in the revenue from the Delhi and Mumbai airports.
Posted on: Sat, 06 Jul 2013 10:00:10 +0000
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