New Delhi: A redesign of the upcoming airport in Bangalore that has raised the initial cost from an estimated $300 million to $420 million has been approved by the union cabinet, it was announced Thursday.
The nod of the Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh has been given to what is called the concession agreement of the Bangalore International Airport Ltd following the revisions, officials said.
"In view of the significant increase in air traffic at the Bangalore airport, it was felt the designed facilities planned in the initial project would be grossly inadequate at the time of opening of the new airport," a statement said.
"Hence the need to re-design the initial phase was recognized," the re-design also necessitated amendment to the concession agreement to reflect the enhanced scope of work and specifications and help the project raise more funds.
According to officials, a fresh study conducted for the airport project showed that the traffic of 8.4 million passengers originally projected for 2020 would be achieved by 2010.
Similarly, it was also found that against the originally projected movement of 41,000 aircraft per annum for 2010, the latest survey estimated the movement of 106,000 aircraft.
"The authorities have therefore redesigned the initial phase of the project by adopting the forecast traffic for 2015 for the terminal building capacity and 2010 for the airside infrastructure," an official statement said.
"In the re-design, the total built-up area of passenger terminal building will be 71,000 sq m, against 55,850 sq m. The apron area for aircraft parking has been increased to 290,000 sq m to accommodate 36 aircraft of Boeing 737 type."
The Government had approved a draft concession pact with Bangalore International Airport Ltd - promoted by Siemens, Larsen and Toubro and Zurich airport managers - in January 2004 for a new international airport at Devenhalli.
While the actual agreement was signed six months later, the financial closure was reached on June 23 last year.
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