On 24 April 2007, Mumbai International Airport (MIAL) achieved financial closure for modernising the Chhatrapati Shivaji International Airport (CSIA) in Mumbai.

MIAL, a joint venture between Airport Authority of India and GVK-led consortium, has tied up its required long-term debt of about Rs.4,200 crore with a consortium of 14 banks and financial institutions led by Industrial Development Bank of India (IDBI). The debt, in conjunction with an equity infusion of about Rs.1,600 crore, will be used to re-design the airport over the next seven years. CSIA will have an entirely new integrated passenger terminal, new runways that will take its passenger handling capacity up to 40 million a year.

The loan, with a 7-year moratorium, is at an interest rate of 215 basis points over the three-year government bond yield. The repayment of the loan will commence from the end of the seventh year and will be repaid in 120 monthly payments thereafter.

The consortium also has the right to use about 10 per cent of the total land area, about 200 acres, for commercial development. Work on the project is scheduled for completion by 2010.

Also See:

Mumbai-Delhi airport modernisation: SC rejects Reliance plea (08-Nov-06)

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