| The construction of the Rajiv Gandhi International Airport Project received a major boost today with the signing of important project agreements namely, the State Support Agreement and Shareholders Agreement. The new International Airport will cater to the increasing demand of passenger and cargo traffic, tourism and accelerate the economic growth of the State of Andhra Pradesh. Mr. J Rambabu, Special Chief Secretary of Govt. of A.P. TR & B who signed the Shareholders Agreement on behalf of Government of A.P. adds “the new International Airport will act as an engine for A.P.'s economic growth by providing direct access to passengers from various international cities and benefit the exporters, importers and other producers with efficient cargo handling and required storage and logistics”.
The development of the new International Airport has been awarded to an Indo Malaysian Consortium consisting of GMR Infrastructure Ltd. and Malaysia Airports Holdings Berhad (MAHB) after an international competitive bidding process. The joint venture company to establish the International Airport has already been incorporated under the name of Hyderabad International Airport Ltd (HIAL).
The Shareholders Agreement has been signed between GMR Infrastructure Ltd, Malaysia Airports Holdings Berhad (MAHB), Govt.of A.P and Airports Authority of India. The Agreement provides for 74 % equity contribution from GMR-MAHB consortium and 13 % each from Airports Authority of India and Govt. of A.P.
Mr.Kiran Kumar Grandhi, Director, GMR Infrastructure Ltd who signed the Shareholders Agreement on behalf of the company, stresses that “our abilities in successful development and operation of world class infrastructure projects shall ensure implementation of the new International Airport to world class standards and make the airport an important landmark to achieve the Vision of the Government of Andhra Pradesh.”
The Airport also marks significant cooperation between Malaysia and Government of Andhra Pradesh with the participation from MAHB. Tan Sri Aris, Chairman, MAHB says “we are proud of our association in this dream venture. We shall provide our experience and expertise for the success of the new International Airport.”
The first phase of the project would be completed by 2007 for handling a capacity of 5 million passengers and 100,000 tons of cargo. The total of 5000 acres of land has already been acquired by the Govt. of A.P. The A.P.Pollution Control Board and Ministry of Environment and Forests of Govt.of India granted the clearances for the project site. The project construction will be started around September, 2004. The cost of the project is about Rs.1200 crores.
Mr. V.D.V. Prasada Rao, Member (Finance) who signed the Shareholders Agreement on behalf of Airports Authority of India says “Government of India, realizing the importance of aviation for economic growth has announced a policy for development of Greenfield airports. The Government has also created conducive environment for development of private airports. The new International Airport shall benefit from both these initiatives of Govt. of India.”
The Airport will provide world class standards of services to passengers with a pleasing and aesthetic environment comparable with international airports. The Airport will also have a modern cargo hub with required logistics, facilities for storage and handling. The Airport will have duty free shopping, foreign exchange bureaus, tourism services, and other retail activities. The area of the International Airport will develop as a self contained city with modern amenities such as hotels, business centers, exhibition centers, food courts for the first time in the country.
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