Rediff.com | November 23, 2000
A new international airport will be developed at Shamshabad near Hyderabad to meet the growing air traffic from the Andhra Pradesh capital.
A memorandum of understanding (MoU) to this effect was signed on Thursday between Airports Authority of India and the Andhra Pradesh government, an AAI press release said.
The MoU was signed by A H Jung, Civil Aviation Secretary, and state’s Chief Secretary P V Rao in the presence of Civil Aviation Minister Sharad Yadav and Chief Minister N Chandrababu Naidu.
The cost of the project is estimated to be around Rs 13.2 billion and would be met by bringing in funds from the private sector, the release said.
A joint venture company is proposed to be formed wherein there would be equity participation to the extent of 13 per cent each by AAI and the Andhra government. The provisional debt equity ratio is 60:40.
