Govt to raise Rs 1,000 cr via tax free bonds for airports

The government of India has decided to set up new airports in small cities and Airport Authority of India is all set to issue tax free bonds in this financial year to raise funds up to Rs 1,000 crore. The funds thus raised will be used for the development of low-cost airports. Maturity period of these bonds is going o be ten years. Those who invest in these bonds will also get tax benefits. AAI Chairman VP Agarwal informed that raising Rs 1,000 crore will help to develop the proposed 51 new airports.

AAI is planning to start the work of 15 airports in this fiscal year itself. Government announced a week ago that new airports are going to be developed in small towns in Andhra Pradesh, Jharkhand, Bihar, Punjab, Uttar Pradesh, Assam, Arunachal Pradesh, Madhya Pradesh, Rajasthan and Maharashtra. Apart from low cost airports, the contracts of another eight new airports will also be given to various companies this year.

New airports may be set up in public, private partnership in Navi Mumbai, Juhu, Goa, Kanpur, Pune, Sri Perumbudur, Bellary and Raigarh. The AAI chairman also informed that construction of airports in private partnership is becoming problematic in north eastern states and thus AAI will construct airports with the co-operation of various State governments. He also informed that Kolkata airport was developed with Rs 2,325 crore and Chennai airport was developed with Rs 2,015 crore.