MARG has bagged an order worth Rs 230 crore from the Karnataka Government for the development and operation of the greenfield airport in Bellary on BOT basis. The state government on 6 August 2010 signed the Project Development Agreement (PDA) with MARG.

In addition to terminal buildings, runways and control towers, MARG is expected to develop access facilities and build utilities necessary to serve the airport during the operational phase. Also, the company is expected to undertake the development of facilities, amenities and other infrastructure such as aviation academy, exhibition / convention centre, business parks, shopping mall, flying club and theme / entertainment parks.

MARG has incorporated a SPV - MARG Krishna Devaraya Airport - to implement the project. Work on the project is expected to be completed in 24 months from the date of signing of the PDA.

The state government has already acquired 900 acre at Sanganakal village. The project is likely to be executed with the debt-equity ratio of 65:35 per cent. The company is in talks with domestic financial institutions to raise the debt in a phased manner.

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Addendum:

The foundation stone for the airport was laid on 20 August 2010.