Kempegowda Airport to get $2.2 bn investment for infra

11 Mar 2021 CW Team

Kempegowda International Airport (KIA) will see an investment of $2.2 billion to develop infrastructure that can handle about 90 million passengers by 2034.

Indian born Canadian businessman Prem Watsa whose Fairfax India Holdings Corporation has a 54% in the Bengaluru International Airport Ltd (BIAL), said in a letter to shareholders that there are plans to expand the airport.

The airport has three potential revenue sources—aero revenue, non aero revenue, and real estate monetisation.

Aero revenue is the revenue generated by providing services such as landing, parking and other services charged as user development fees (UDF) to airlines and passengers.

The aero tariffs, which are fixed by the Airport Economic Regulatory Authority (AERA), are set for five year periods, which are also known as control periods.

With regard to real estate monetisation, Watsa told the media that BIAL has approximately 460 acres of land adjoining the airport, which can be developed.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Watsa said a 100% owned special purpose vehicle (SPV) subsidiary of BIAL was incorporated to carry on the real estate activities of BIAL. This entity—Bengaluru Airport City Limited (BACL), is now capitalised and staffed and is expected to be self funded.

Plans to develop the first 176 acres of land have been initiated, and several deals are being negotiated. Infrastructure planning and detailed design for the development of BIAL has been completed, said Watsa.

Following the principles of a smart city, BACL will focus on four asset classes—business parks, dining and entertainment village (RDE), retail, hospitality, and convention and exhibition centres.

Image Source

Also read: Fairfax to list Anchorage in Indian stock exchanges

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

Kempegowda International Airport (KIA) will see an investment of $2.2 billion to develop infrastructure that can handle about 90 million passengers by 2034. Indian born Canadian businessman Prem Watsa whose Fairfax India Holdings Corporation has a 54% in the Bengaluru International Airport Ltd (BIAL), said in a letter to shareholders that there are plans to expand the airport. The airport has three potential revenue sources—aero revenue, non aero revenue, and real estate monetisation. Aero revenue is the revenue generated by providing services such as landing, parking and other services charged as user development fees (UDF) to airlines and passengers. The aero tariffs, which are fixed by the Airport Economic Regulatory Authority (AERA), are set for five year periods, which are also known as control periods. With regard to real estate monetisation, Watsa told the media that BIAL has approximately 460 acres of land adjoining the airport, which can be developed.4th Indian Cement Review Conference 202117-18 March Click for event info Watsa said a 100% owned special purpose vehicle (SPV) subsidiary of BIAL was incorporated to carry on the real estate activities of BIAL. This entity—Bengaluru Airport City Limited (BACL), is now capitalised and staffed and is expected to be self funded. Plans to develop the first 176 acres of land have been initiated, and several deals are being negotiated. Infrastructure planning and detailed design for the development of BIAL has been completed, said Watsa. Following the principles of a smart city, BACL will focus on four asset classes—business parks, dining and entertainment village (RDE), retail, hospitality, and convention and exhibition centres. Image Source Also read: Fairfax to list Anchorage in Indian stock exchanges

Real Estate

29 Jun 2026

Omaxe to Invest Rs 62 Billion in Hospitality Expansion

Omaxe has announced the launch of a dedicated hospitality business vertical with plans to develop 19 hotels across five states over the next four to five years as part of its strategy to strengthen recurring revenues and expand its integrated development ecosystem.The real estate developer proposes to invest approximately Rs 62 billion, subject to regulatory approvals and market conditions, to develop nearly 5 million sq ft of hospitality assets across high-growth urban centres, pilgrimage destinations and transit corridors.The proposed portfolio will be integrated with Omaxe's existing townsh..

Infrastructure Transport

29 Jun 2026

Third Railway Line Between Tatanagar And Adityapur Likely By September

The third railway line between Tatanagar and Adityapur is expected to be commissioned by September as work on the corridor advances, according to railway sources. The project to add a fourth line on the busy route is progressing and has been allocated Rs 50.89 billion (bn) in funding. The allocation underscores the focus on increasing capacity and easing congestion on the corridor. Relevant timetables are being adjusted to integrate the new capacity into regular operations. Construction activity has involved track laying, formation work and signalling upgrades along strategic stretches, with m..

Infrastructure Transport

29 Jun 2026

Indian Railways Approves Rs 2.7 bn Kavach Rollout in Odisha

Indian Railways has approved a Rs 2.7 billion (Rs 2.7 bn) plan to install the Kavach train collision avoidance system on 631 route kilometres in the East Coast Railway zone. The Ministry of Railways said the work will form part of a wider Kavach deployment programme that relies on an LTE based communication backbone rather than a standalone installation. The approval marks the latest stage in the steady expansion of the indigenous safety technology across the national network. The decision aims to enhance safety and reliability on corridors serving Odisha and adjoining areas. The project will ..