Kolkata airport modernisation cost up by 20 percent

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SME Times News Bureau | 31 Mar, 2010
The modernisation cost for Netaji Subash Chandra Bose International (NSCBI) Airport has gone up by around 20 percent from Rs.1,942 crore to Rs.2,325 crore, an Airports Authority of India (AAI) official said here Tuesday.

"The board of AAI approved the cost escalation of the project about 15 days back," airport director R. Srinivasan said here on the sidelines of a press meet organised by Bengal National Chamber of Commerce and Industry.

He attributed the cost escalation to the increase in raw material costs since 2006 (when the cost was earlier approved) and also partly to certain baggage handling facilities that were later included in the plan.

The project, however, is on schedule and would be commissioned by August 2011, Srinivasan said.

The runway extension is behind schedule, he said. It will be completed by June 2010, instead of September 2009.

"Close to 40 percent of the project work is complete and we are absolutely confident of completing the project on time," he said.

A consortium of ITD of Thailand and ITD Cementation India Ltd had bagged the construction contract for the modernising project of the NSCBI Airport.

The AAI has now decided to double the area to be developed for commercial purpose from the earlier planned 45 acres to 90 acres.

"We have found out that there is additional scope for developing commercial space and we would be freezing the decision within the next 2-3 months," Srinivasan said.

"It would be up to the developer to decide whether they would build hotels or convention centres or such other facilities," he said.