AAI to raise $300 million via ECB next fiscal

As part of its capex plan to invest Rs 25,000 crore over the next five years, the Airports Authority of India (AAI) is looking to raise $300 million in first tranche through external commercial borrowings (ECBs) by next fiscal. The fundraising plan received the board’s approval last month. The proposed investment is for building new airports, upgrading of unused airstrip and doubling the current passenger handling capacity of 345 million to 700 million per annum.

Speaking to media on the sidelines of aviation exhibition Wings India 2020, AAI chairman Arvind Singh said the airports operator would be spending Rs 5,000 crore on capex for the next five years beginning this year. “We are thinking of going for ECB at lower rates to fund our plans. Also, we get funds from the central government under the Udan scheme. The Centre has allotted Rs 4,500 crore to build airports under the Udan scheme. We will be going for ECBs next financial year,” Singh said.