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International bidders ask state to cover initial losses of the Bangalore airport project

Sunday, 26 Nov 2000
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Zurich Airport and Dusseldörf Airport, the international bidders for the proposed international airport at Devanahalli in Bangalore have asked the Karnataka state government to provide a bridge loan of $80-$100 million to cover initial losses of the airport project.

 

The foreign consortium would be holding a 74 per cent stake in the project, which is being build to handle more than five million passengers.

 

The consortium anticipates profits and loan repayment only after traffic picks up, i.e. after about seven to eight years. In order to cover financial constraints during this period, the consortium has asked the state government for a bridge loan.

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