Singapore to fund India’s first privately owned airport in West Bengal for $2.5 billion.
February 28th, 2008 - by Nazia VasiSingapore-based Changi airports has signed an agreement with Bengal Aerotropolis Projects Ltd. (BAPL) to invest $2.5 billion or Rs 10,000 crore to develop India’s first privately owned airport. The Durgapur Aerotropolis (airport city), India’s first, will be situated in the Durgapur-Asansol region of Bardhaman district in West Bengal an East India state.
The project will involve setting up of a Greenfield Airport, industrial park, logistics hub, IT park with a supporting infrastructure like housing, tourism, healthcare and social interchange facilities. While the airport will be developed over approximately 300 hectares, the supporting industrial and social infrastructure will be developed over approximately 650 hectares. The airport is expected to be functional in next 2.5 - 3 years and would have the ability to handle A-320 aircrafts.
The plan is part of a bigger idea to set up a health city and a sea port in addition to the airport. Last year, West Bengals Chief Minister, Mr Buddhadeb Bhattacharjee, said the Planning Commission was conducting a feasibility study with regard to the setting up of a sea port on the Shanghai model in West Bengal.
Under the Agreement, Changi Airports International (CAI) will first carry out a detailed review of the proposed airport including a review of the airport capacity, land use plan, passenger terminal layout and development phasing of the air and land side of the Airport. The agreement also involves CAI in conducting training for senior management of Bengal Aerotropolis Projects Ltd. (BAPL) personnel at the Singapore Aviation Academy. The training programs are targeted at introducing senior managers at BAPL to the technical aspects of developing and managing an airport terminal intended to spawn an aerotropolis.
According to Mr Buddhadeb Bhattacharjee, the State Government is focused on upgrading the existing infrastructure and setting up new infrastructure facilities that would be commensurate with the economic growth that has been taking place in the State. Already, a technology hub is being set up at an investment of Rs 400 crore.
West Bengal’s Minister for Industry & Commerce, Mr Nirupam Sen, said the State’s gross domestic product at $21 billion was ranked third in the country. In 2004, 196 projects entailing an investment of $522 million were implemented in the State. From an investment of Rs 450 crore in 1992-93, West Bengal has been attracting an investment of around Rs 2,000 crore “in each of the last few years,” he said.
Mr Sen said sector-specific parks were being set up in the State as part of the infrastructure augmentation exercise. These include 12 IT parks, a biotech park and a chemicals park. The Eastern state has also signed a pact with an Italian company for implementation of water supply and solid waste management projects in 14 towns in West Bengal. The implementation of these projects would entail an investment of Rs 157 crore. Of this, an amount of Rs 132 crore (25 million euros) would be provided as assistance by Italy.
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February 29th, 2008 at 5:27 am
Why is a picture of a USAF F-16 jet is posted titling “Indian Airports soaring to new heights”? Shouldn’t it be an Indian Su-30MKK?
February 29th, 2008 at 9:32 am
yes, was looking for a great picture of an Indian airplane, however, the internet just didn’t throw it up! if you do find some nice pictures pls post them. i will be happy to add them
February 29th, 2008 at 11:59 am
Yeah, we should highlight it is a commercial, and not military airport…
February 29th, 2008 at 2:47 pm
Aha ! I see the picture has changed. Thats more representative.
March 4th, 2008 at 12:54 pm
You know in China when they get a billion dollar deal, everyone hears about it - like Intel in Dalian and Chongqing for example. But when it comes to India - everyones kinda quiet. Its a great deal and will help revolutionise West Bengal, Calcutta and the India/China trade corridor through Yunnan and Guangdong and into Northern and Eastern India. Its pretty significant on behalf of the Singaporean gvt.
March 4th, 2008 at 4:18 pm
Thats very true, India needs to publicise the vast amounts of FDI & FII coming into the country, it might give incentive to more companies to pour money into India!
March 5th, 2008 at 1:09 pm
I was of the understanding that the Hyderabad (GMR) new international airport was India’s first private airport? It had a soft opening last month and scheduled to open this month.
http://www.newhyderabadairport.com/
March 6th, 2008 at 6:46 pm
Hello all
I noticed this article buried in the West Bengal papers last week but with the budget and the nuclear issue, I think other papers have let it slip through to the ‘keeper. I look forward to discussing the details further with relevant people when I get to Kolkata next week.
I did want to point out that the airports discussed in the article and from comments remain government owned. In Bangalore, where the new airport is due for completion later this month, and the newly opened Hyderabad airport, are also public-private partnerships.
As for not giving it much publicity, maybe that’s a good thing. This trip to India has really brought home to me the extent of the Naxalite (Maoist guerilla) threat in a number of Indian states. Durgapur is just a small town surrounded by a large swathe of rural India. I hope that the Naxals do not target the airport project.
Of course, the other reason I am quite happy with the relatively low profile is the fact that the West Bengal government has a poor recent record of delivering the social, political and security needed for such investments to bear fruit. Just ask Tata and Reliance about Singur and Nandigram.
I will be very happy if the strategic regional hub develops as planned, but I will be holding my breath for quite some time yet. I hope that it does not have negative repercussions for other much-needed infrastructure investment in India.