Chandigarh International Airport - AAI approves Rs 500 cr

Chandigarh, Feburary 16
The Airport Authority of India (AAI) has approved an investment of Rs 500 crore for establishment of an airfield and a civil aviation terminal for the Chandigarh International airport project.
According to sources, a decision in this regard was taken at a meeting of the AAI board held at Delhi and that this would pave the way for start of work on the boundary wall as well as airfield and civil aviation terminal on land in Mohali, which has been acquired for the international airport.
Sources from the capital said the AAI board was in a position to take this decision as it had been designated as a ‘mini ratna’, which gave it the authority to take decisions on investments up to Rs 500 crore. Otherwise, decisions involving financial implications beyond Rs 50 crore have to be referred to the Union cabinet.
The sources said the AAI would now approach the Election Commission to clear the proposal to form a joint venture company comprising the AAI, Punjab and Haryana to steer the project. The AAI is keen to start work on construction of the boundary wall of the project as well as other works, which can be done only after handing over of the land to the JV Company.
The sources said the AAI board, which met recently, also approved the formation of a JV Company to steer the project. The company is likely to be formed after a formal follow up of the memorandum of understanding (MoU) under which the AAI has a 51 per cent stake in the project and the Punjab and Haryana government a 24.5 per cent stake each. Earlier, the Greater Mohali Area Development Authority (GAMADA) had acquired the land for the project at a cost of Rs 460 crore, half of which had been borne by Haryana.
According to the MoU signed by the three partners in the project in the beginning of last year, Punjab and Haryana have to provide land for the project and all superstructures have to taken up by the AAI. Price Waterhouse, which had earlier been appointed as consultants for the project, has submitted its recommendations on the authorised equity capital for the JV Company.