A PUBLIC PRIVATE PARTNERSHIP WITH GOVERNMENT OF...

(A PUBLIC PRIVATE PARTNERSHIP WITH GOVERNMENT OF KERALA)

PRE FEASIBILITY REPORT

Netherlands Airport Consultant

KGS Aranmula International Airport Ltd Pre Feasibility Report

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Table of contents Page No.

Executive Summary 3-7

Consultants of Project Report 7-8

Introduction 9–10

Scope of the study 11

Method followed for the study 12

Why Aranmula International Airport 13

Aviation scenario 14

Past trend 16

Future trend – the driving factors 17-18

Highlights of Government Policies and Supports 18

A Socio-Economic Overview 19

Population 20

Pilgrim Centers 21-22

Tourist Centers 23-26

Industry and Commerce 26

Professional Educational Centers 27

Who is behind the project 28-32

How is the Project going to be executed 33-34

Approvals Required for Aerodrome 34-35

Technical feasibility 36-38

Meteorological data 39

Runway orientation 39

Ground features 40

Obstacle study 40-41

Airport Features 41-49

Traffic Analysis 50-52

Financials 53-57

Master Plan 58


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Executive Summary OVERVIEW:

Aranmula is about 120 Km north of T h i r u v a n a n t h a p u r a m ,

capital city of Kerala, and 140 Km South of Cochin. It is in located in

Pathanamthitta District, which has a huge concentration of Non Resident

Indian and Non Resident Keralites population. Aranmula International

airport intends to be a fully privatized International airport in Central

Travancore providing high end aerodrome facilities. The airport is being

developed by KGS Aranmula International Airport Ltd.

The Aranmula International Airport at a glance

An International Airport, on a PPP/ BOO Model is being setup in 500

Acres of land in Aranmula, Pathanamthitta District, the Pilgrimage

Capital of Kerala situated between Kochi and Thiruvanathapuram at a

project cost of Rs.2,000 Crores. The first phase involving construction of

airport and it’s facilities entails a Project Cost of Rs.550 Crores.

The Airport proposes to serve a population fof 50 lacs in the Districts of

Pathanamthitta, Allepey, Kottayam and Idukki.

The density of population in Pathanamtitta and adjoining districts

necessitate an airport for Central Travancore. The number of Non Resident

Keralites in Gulf and other countries will be greatly benefitted by the

location of the proposed airport.

Kerala, amongst all the Indian States, attracts the highest density of air

travel. One in every three Keralites fly every year as compared to one in

ten in the rest of India.

Air Traffic has multiplied more than 5 times in the last 10 years

(2004 to 2014) in Kerala. It has increased from 2 Million to 11 Million

passengers per annum.

The proposed site offers a gateway to Sabarimala, which attracts 5 Crores

devotees annually. The shrine is only 1 hour from the airport facilitating

same day arrival, darshan and departure in the evening for devotees from all

parts of India. Sabarimala is the 2nd most visited shrine in India and the 3rd

most visited shrine in the world.

When international flights are taken into account, Kochi, Kozhikode and


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Trivandrum are ranked at 4th, 7th and 8th busiest airport in the

country.Taking into account all flights ( domestic plus international) Kochi,

Trivandrum and Kozhikode Airports in Kerala are ranked as the 7th, 11th

and 12th busiest Airport in the country.

Tourists heading towards Kumarakom, Alapuzha will find the location of

this airport as most convenient for their itinerary

Government of Kerala has 10% equity in this project and nominating

a director to the board.

Government of Kerala is providing around 50 acres of Government

land to the project.

One of the major Public Sector Oil Company is likely to set up fuel

farm of the airport.

The terminal building is designed to handle 1000 passengers at a time.

The Aranmula International Airport is designed to cater to A i r b u s A-

320/ Boeing 737 and other wide bodied aircraft.

“First Private International Airport in India”, a paper presented in

“International Aviation Conference” was much appreciated by all

participants including all airlines and airports.

Budget airlines like Indigo and AirAsia in the domestic sector and Tiger

Airways are mainly looking for Non Metro Airports to tap the market

potential.

The airport will be operated by one of the reputed Airport Operators,

DNata (a subsidiary of Emirates Airlines), Fraport (Germany), Aeroports de

Paris or Changi ( Singapore).

This International Airport Project will generate direct and indirect

employment to more than 6000.


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As per the latest survey, each flight generates 600 employments

directly or indirectly.

The majority of NRI passengers and NRK passengers of Trivandrum &

Kochi Airport originate within 50 K.Ms. radius of this site. 25% of the

Kerala air traffic ( domestic + international ) hail from the influential zone

of the airport.

TRAFFIC:

Global Traffic

The International Air Transport Association (IATA) released its first 20-year

global passenger growth forecast, projecting that passenger numbers are

expected to reach 7.3 billion by 2034. That represents a 4.1% average

annual growth in demand for air connectivity that will result in more than a

doubling of the 3.3 billion passengers expected to travel this year.

Among the highlights of the report is the expectation that China will overtake

the United States as the world’s largest passenger market (defined by traffic

to, from and within) by 2030. Both markets, however, are expected to remain

the largest by a wide margin. In 2034 flights to, from and within China will

account for some 1.3 billion passengers, 856 million more than 2014 with an

average annual growth rate of 5.5%. Traffic to, from and within the US is

expected to grow at an average annual growth rate of 3.2% that will see 1.2

billion passengers by 2034 (559 million more than 2014).

The report, the first from the new IATA Passenger Forecasting service,

produced in association with Tourism Economics, analyzes passenger flows

across 4,000 country pairs for the next 20 years, forecasting passenger

numbers by way of three key demand drivers: living standards, population

and demographics, and price and availability.

Future Global Growth Trend Highlights

By 2034 the five fastest-increasing markets in terms of additional passengers

per year will be China (85.6 Crore new passengers), the US (55.9 Crores)and

India (26.6 Crores).


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Comparison between USA, China and India

Countries USA CHINA INDIA

Population ( Crores) 31 136 121

Number of Airports (

Paved )

5194 442 135

Annual Passenger

Traffic ( Crores)

74 35 16

Airports per lac of population

1.67 0.03 0.01

Per capita annual

frequency of air travel

2.38 0.25 0.13

From the above table it is evident that the potential for air traffic growth is

enormous. India has only one airport for one crore population. China has three

times as many.As disposable incomes rise and Low Cost Carriers offering

affordable fares, the Indian aviation industry and it’s facilitators, which include

airports are expected to grow exponentially.

"The world is focused on Indian aviation - from manufacturers, tourism

boards, airlines, global businesses to individual travelers, shippers and

businessmen. If we can find common purpose among all stakeholders in

Indian aviation, a bright future is at hand," as per Mr Tony Tyler, Director

General and CEO of International Air Transport Association (IATA).

The air traffic growth in Kerala is beyond expectations. It’s share of All India

Traffic is on the upswing.

The aviation market is expected to improve in FY15 with two new airlines

entering the industry.

There is large untapped potential for growth in the Indian aviation industry

due to the fact that access to aviation is still a dream for nearly 99.5 per cent

of its large population, nearly 40 per cent of which is the upwardly mobile

middle class. It is critical for the industry stakeholders to engage and

collaborate with the policy makers to come up with efficient and rational

decisions that will shape the future of the Indian civil aviation industry. With

the right policies and a relentless focus on quality, cost and passenger

interest, India would be well placed to achieve its vision of becoming the


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third largest aviation market by 2020 and the largest by 2030.

International air traffic in Kerala is growing at the rate of 10% every year.

The total share of Kerala airports in All India International Traffic is 16.80%

In all the other three southern states (Tamil Nadu, Andhra Pradesh and

Karnataka), one airport viz. Chennai, Hyderabad and Bangalore is catering to

80% of the airtraffic of the state. But in Kerala, the air traffic is evenly spread

over to all 3 existing airports.

PROJECT COST AND MEANS OF FINANCE:

Total Project cost of Phase 1 of the international airport is Rs.550 Crores,

which will be financed through 40 per cent Equity and 60 per cent Debt.

Consultants for the Project Traffic & Financial Analysis Report prepared by

Ernst & Young is a global organization of member firms

in more than 140 countries, headquartered in London, UK. It was ranked by

Forbes magazine as the 8th largest private company in the United States.

Ernst & Young is a global leader in assurance, tax, transaction and advisory

services. E&Y has one strong global leadership team that sets one single

global strategy and agenda.

Its 8,700 global professionals deliver tailored advice attuned to needs–

helping to drive competitive advantage and increased shareholder returns

through improved decision-making, through services. E&Y transaction

service is supporting corporates and its specific challenges and leverage

opportunities in the market.

The Master Plan and Airport design done by

NACO, Netherlands Airport Consultants B.V. is a global

provider of airport planning, airport design and airport engineering services.

Established in 1949, NACO has assisted clients with realizing their goals for

airport development at more than 550 airports around the world. NACO is

world's leading independent airport consultancy and engineering firm with

8,000 professionals. NACO is a member of Royal HaskoningDHV, one of


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Europe's leading project management, engineering and consultancy service

providers, ranking globally in the top 10 of independently owned, non-listed

companies and top 40 overall. NACO is providing wide range of services relating

to Airport consultancy, Airport planning and airport development, Airport

design and airport engineering and Airport project implementation.

Environment Consultant and Environmental Impact Assessment Report

SGS India Pvt. Ltd is the world’s leading inspection,

verification, testing and certification company. They are recognised as the

global benchmark for quality and integrity. With more than 80,000

employees, they operate a network of more than 1,650 offices and

laboratories around the world.

Obstacle Survey Report by

Aero Survey is a team of professionals with adequate experience

in the field of Civil Aviation. The team of Aero Survey is headed by Bimal

Kumar Srivastava, who is having about 40 Years of Aviation Experience, out of

which more than 24 Years in Airport Survey (Obstacle Survey) & Cartography.

Aero Survey offers specialized services for aerodromes & helipads to meet

various operational requirements of existing or proposed Airport or Heliport in

the form of Pre- Feasibility Inspection /Site Inspection) and preparation of

Preliminary Report (Inspection of the Airport & Helipad site to assess the

feasibility of establishing or developing the Airport / Helipad), Obstacle Survey

/ Topographical Survey/ Aeronautical Charts/ Survey Report.

Legal Consultants

Leading advocate and solicitors with branches

throughout India. It is the largest law firm in India. The firm serves most of

the largest corporations and financial institutions domestically and internally.


9

Introduction

Airports play a vital role in the development of Industry and

Commercial trade as they offer crucial services for transportation of goods

and passengers from one place to another. They are also essential for

domestic and international tourism, where limitation of time is the key

factor. While airports play catalyst to economic development, the economic

developments in turn generate demand for the former. As a result, the

aircraft fleets of airlines are growing at a rapid speed with improved

technology with regard to speed, time, capacity, etc., to cater to ever-

increasing demand. To provide impeccable service, the airports also need

infrastructural development. Thus, continuous improvement of airports

needs airport management for planning, developing and operating efficiently

and profitability to meet the present and future need of air travel; both,

domestic and international.

Airports also represent the country's door to the world. Passengers

form their first impression about a nation from the condition of its airports.

They can be effectively used as a symbol of national pride, if sufficient

attention to their quality and up- keep is paid.

Indian airports have been facing an infrastructural bottleneck since

independence. A majority of airports was constructed during the World

War primarily to meet the contingent and defence requirements. Hence,

they were not adequate to handle commercial traffic. These airports were

opened for commercial operation in 1950, but till 1972, no major

changes were envisaged in the field of airports, as the airports were

under control of the Director General of Civil Aviation.

The linkages between international trade and the transport network are

obvious. An efficient air-transport system can boost trade, commerce,

employment and tourism.

It is now widely acknowledged that efficiency in the air-transport sector

has major spillover effects on the competitiveness of both goods and services.

The development of air transport services is crucial for the sustainable

development of trade and tourism. This sector acts as an economic catalyst


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by opening up new market opportunities, moving products and services with

speed and efficiency.

Because of the significant role of airport infrastructure in the national

economy in 1997, the Ministry of Civil Aviation brought out a policy on

airport infrastructure. This policy emphasized the need for private

investment to increase airport capacity and achieve a higher level of

customer satisfaction. Also the government has announced incentives to the

developers such as 10 year Income Tax holiday, 100 per cent FDI, etc.

In 2008, the Government announced the Greenfield Airport Policy,

encouraging new airports in the public as well as private domain.

KGS Aranmula International Airport Ltd., as a part of social

obligation and long term prospects of such an infrastructure, plans to

develop an Airport in about 500 acres of land situated at Aranmula,

Pathanamthitta District, Kerala.


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Scope of the study

Scope of the study comprised the following:

Site feasibility study

Study of wind data

Determination of runway orientation

Determination of land requirement

Topographical and obstacle study

Estimation of potential traffic

Determination of critical aircraft for design of airport

Preparation of master plan

Air side and city side facilities

Conceptual design of components

Preliminary estimates

Broad financial analysis

Environmental impact assessment and management proposals


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Method followed for the study

The study had been executed in three perspectives such as WHY, WHO

and HOW.

The first part (WHY) explains the need of an international airport at

Aranmula and the socio economic overview of the influential zone, etc. The

second part describes the details of promoters. Third part details the technical

aspects, master plan, financial feasibility, etc.


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WHY Aranmula International Airport


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The Aviation Scenario

At present, the Indian aviation industry, with a tremendous growth rate, is

one of the fastest growing aviation industries in the world. The government's

partial open sky policy has led to many overseas players entering the market

and the industry has been growing both in terms of players and number of

aircrafts.

As compared to the national air passenger growth, the three International

Airports in Kerala, (Cochin, Thiruvananthapuram and Calicut) put together

showed an incredible increase in the same. Considering this fact, there is a

fourth international airport of Kerala coming up in Kannur

The Government of India is going all out to encourage Aviation in terms of

both airlines and ground infrastructure aerodromes. In the past decade

domestic airlines had increased from three to more than ten, in addition to a

large number of non scheduled air taxi/charter operators. Similarly Airports

Authority of India solely responsible till recently for maintenance and

development of airports had increased its budget from 500 cr. to 2260

cr ( 2013-14 ). Government had agreed for private participation in development

of airports as a result, there are green field International airports at Cochin,

Hyderabad and Bangalore, in addition to handing over of existing airports at

Delhi and Mumbai. The Government has given In Principle approval to 15

Greenfield Airports as on July 2014.

Further Government desires private parties to build more and more new

airports even in remote and two/ three tier towns to encourage establishment of

regional airlines and connectivity to these smaller towns to the expectations of

the people and demand. The emphasis is also on Low Cost Airports avoiding

the glitz and glamour of Glass Fronted Terminal Buildings.

There is certainly a vast scope for development of airport at places like

Aranmula in Central Travancore.


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AIR NETWORK IN INDIA


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The Past Trend The Indian aviation industry had witnessed a fabulous growth in the last

decade. Following charts show the passenger traffic (in millions) occurred during

each financial years since 2003-04 to 2013-14. From the data it is clear that the

passenger traffic growth is faster and at the same time more correlated with the

national economic scenario.

The aircraft movement is directly correlated with the passenger traffic and

its growth. The following charts details the volume of aircraft movement (the

figures shown below are in ‘000) and its growth rate for the same period. For the

year 2013-14 the total aircraft movement (all India) was 15,44,640.

The passenger traffic growth rate for last eight years through three

international airports in Kerala (Cochin, Thiruvananthapuram and Calicut) has

outperformed the national figures as shown below;

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 20013 2014

Passengers in Million

Air Passengers Growth in Kerala

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Nu

mb

er o

f A

irp

asse

nge

rs


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Future Trend – the driving factors

Linkage between per-capita income and air passenger growth rate

The growth in a countries per-capita income demonstrates the

economic outlook and the state of economy. As the per-capita income

increases the need of goods and services increases.

INDIAN GDP

In India the budget allocation for the development of infrastructure is

increasing year on year for the recent times. It is explicit that India has

to cover the huge infrastructural gap existing in the years to come. Hence it

can be expected that the government initiative will be present for a longer

period. Various other sectors like information technology, agriculture, etc are

expected to grow at a better rate in the coming years. This will in-turn

increase the per-capita income and stimulate the domestic tourism and up

gradation of travel mode and there by an increase in the air-travel.

GDP-PERCAPTIA(PPP)(US$)

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GD

P

0

20000

40000

60000

80000

04-05

05-06

06-07

07-08

08-09

09-10

10-11

11-12

12-13

13-14

Ru

pe

es

Years

Per Capita Income at Constant (2004-05)Prices

INDIA

KERALA


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Linkage between GDP growth rate and air passenger growth rate

The growth rate in GDP shows the prospects of an economy and its overall

growth. As Indian economy is growing at a tremendous pace and it is likely to

continue this pace in future (it is anticipated that India will be one of the least

affected nations in the worldwide financial turmoil caused recession).

Highlights of Government Policies and Supports: An overview of policies and supports by Central Government can be

summarised as follows;

100 per cent FDI under automatic route is permissible for Greenfield

airports.

For existing airports, FDI up to 74 per cent is permitted through automatic

approvals and up to 100 per cent through special permission (from FIPB).

Private developers encouraged for setting up of private and public Aero-

dromes.

100 per cent tax exemption for airport projects for a period of 10 years

49 per cent FDI is permissible in domestic airlines under the automatic

route, but not by foreign airline companies. 100 per cent equity ownership by Non- Resident Indians (NRIs) is permitted.

74 per cent FDI is permissible in cargo and non-scheduled airlines.

The I nd i a n Gove rnme n t has s e t up an A i rpor t E c o n o m i c

Regu l a to r y Authority to provide a level playing field to all players.

Encouragement of establishment of regional airlines and

development of aerodromes to connect Tier II/ Tier-III towns/remote

areas and interior areas.

Establishment of Low Cost Airports


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A Socio-Economic Overview of Aranmula

Airport Influential Zone

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Population

Out of the total population of Kerala state 20 per cent are residing in

the influential zone. The total population of Kerala is currently 3.38 Crores

(2011 Census).

Moreover, the density of population in Kerala is rather high as

compared to the all India average. This illustrates the importance of need

for capacity improvement of transportation infrastructure.

Year Density (per sq.km) Kerala India

1961 435 142

1971 549 177

1981 654 216

1991 749 274

2001 819 324

2011 859 382

Traffic in Kerala has been growing at a rate of 10–11% every year, resulting in

high traffic and pressure on the roads. Road density is nearly four times the

national average, reflecting the state's high population density. This

necessitates a strong air travel network to save on time and stress.


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Pilgrim Centers

This section covers the important Religious places such as Temple,

Church and Mosque.

Sree Dharma Sastha Temple, Sabarimala

Sabarimala Sree Dharma Sastha Temple, dedicated to Lord Ayyappa, is

the most famous and prominent among all the Sastha temples in India. The

temple situated on a hilltop named Sabarimala in the Pathanamthitta district.

This temple is unique in many respects. One is that the temple is open to

all irrespective of caste, creed or religion. The temple is open for worship

211 days in a year.

The temple attracts 50 million pilgrims annually ( Source: Travancore

Devoswam Board), making it the second most visited pilgrimage center in India

and the third most popular house of worship around the world.

Aranmula Airport is located an hour’s drive from Sabarimala temple. The

below table gives a bird’s eye view of the proportion of traffic which can be

benefitted by Aranmula airport.

The expectation is that about 1% of the devotees to Sabarimala, who are

presently using air to Cochin/ rail/ surface transport to reach the shrine, will


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prefer to fly into Aranmula airport.

A Morning / Evening Sabarimala package can be developed which will

have many takers. Pilgrims now have to spend at least one overnight at hotel,

whatever be their mode of transport. With Aranmula airport as the hub,

pilgrims can fly in around 8 am in the morning, reach Pampa at 10 am. Reach

the shrine by 11 am, finish darshan, lunch at Pampa at 2 pm. Reach back

Aranmula at 4 pm. Fly out of Aranmula at 5 pm. Moreover, pilgrims visiting

Sabarimala only once in a year due to the time factor will now be attracted to

visit at least two/three times in a year.

Maramon Convention (February)

The Marthoma Maramon Convention is the biggest religious gathering

of Christians in Asia. It is held on the banks of river Pamba, Maramon, near

Kozhencherry since 1896 usually in the month of February. Thousands of

people from all over India assemble here at this great occasion. The

Maramon Convention displays co-operation and union between different

sections of Church in Kerala. It fosters ecumenical outlook. It is also a source

of spiritual inspiration and enlightenment for thousands. Convention is

normally scheduled for duration of 10 days. About 1,00,000 pilgrims attend

this convention each day.


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Tourist Centers: Advantage Aranmula

Foreign and domestic tourists generally follow the traditional quadrangle

route to visit their favourite tourist attractions. They generally land in Kochi, go

to Munnar, Thekkady, Kumarakom, Alapuzha and take the flight back from

Cochin.

After the commencement of airport services from Aranmula, tourists, aftey

complete Alapuzha can come to Aranmula and take a flight back home from the

airport.

Aranmula Vallamkali (August-September)

Aranmula Vallamkali (Boat race) is a famous water fiesta is held during

Onam (August - September). The snake boats assemble near the Sri

Parthasarathy Temple before the grand procession. Each boat is 100 m.

long and accommodates 4 helmsmen, 100 oarsmen and 25 singers. The

snake boats move in pairs to the rhythm of full throated singing and

shouting, watched by an excited crowd. The commencement of the event

is marked by a snake-boat race in the afternoon. Early morning, the Snake

Boats assemble near the temple, and take off in pairs.


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Thekkady Thekkady (in Idukki District) is one of the finest wild life reserves in

India – the Periyar wild life sanctuary spread over an area of 777 Sq.Km of

which 360 Sq.Km is thick ever green forest. The Periyar wild life sanctuary was

declared as a Tiger Reserve in 1978. The Mullaperiyar Dam built across the

river Periyar with Surki mix before 121 years, still exist as a wonder to the

tourists.

Munnar Situated 55 Km from Idukki town at an elevation of 1524 M above the

mean sea level and on the confluence of three mountain streams

Kannimalayar, Nallathanni and Kundala. It is a health resort especially in

summer season. It is the centre of Tea Industry and also the Head

quarters of the Kannan Devan Hill produce Company. Munnar also has the

highest peak in South India Anamudi.

Kumarakom (Kottayam District)

Kumarakom gained national and international importance with the visit

of the Hon'ble Prime minister A.B. Vajpayee in December 2000. Kumarakom

is a small village 14 Km west of Kottayam. It is a part of Kuttanad, which is

a 'wonder land', lying below sea level, comprising of a number of islands, in

the back waters. Kumarakom Village covers an area of 5166 Ha of which

2,413 Ha is Lake Portion, 1,500 Ha is paddy fields and the remaining portion

of 1,253 Ha is dry land. Kumarakom is an unbelievably beautiful paradise

of mangrove forests, emerald green paddy fields and coconut groves

interspersed with enchanting waterways and canals adorned with white lilies.

Situated on the Vembanad Lake, this small water world has plenty of

traditional country boats, crafts and canoes which will take you in to the heart

of scenic Kerala.

Vembanad Lake

Kottayam has a vast network of rivers and canals, which empty into the

great expanse of water called the Vembanad Lake, a fast developing

backwater tourism destination. Vembanad Lake is having 83.72 Km length


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and 14.48 Km width. Traditional Cargo boats called Kettuvallams are

modified into Cruise boats and House boats, with all basic facilities like

kitchen, toilet, bathrooms, sit outs, etc. These boats gracefully move around

the back waters, providing facilities to tourist to enjoy the beauty of the

Vembanad Lake in a relaxed pace.

Boat Races In the festive months of August and September, the rivers in and near

Kottayam are turned into festival centers. The serene lakes come alive

during Onam with a spectacular water regatta - the snake boat races. It is

amazing to watch oarsmen, at least a hundred in one boat, slice their way

through the waters to the fast rhythm of their own full throated singing. In

the Kumarakom boat race conducted at Kavanar and Kottathodu rivers,

about 50 types of boats viz veppu, ody, churulan and few snake boats

participate.

Wagamon

Situated 64 Km from Kottayam, this enchanting hill station at an

elevation of 1,100 M above sea level is a trekker’s paradise. This

enchanting hill station on the Idukki- Kottayam border dotted with tea

gardens and meadows will soon be one of India's foremost Eco tourism

projects. The breeding centre of the Kerala Live stock Board is located here.

Alappuzha Beach Alappuzha beach is one of the most popular spots in the district of

Alappuzha. Its beautiful garden on the shore gives an exclusive sight.

Imposing buildings of a colonial past overlook the shore.

Backwater Cruise View the landscape beauty, monuments, temples, churches and

industries of Alappuzha by cruising through its rivers, canals and

backwaters. The starting point is from Alleppey and the finishing point is at

Jetty.

Boat Races Alappuzha district is proud of being the cradle of boat races. All the

important boat races, namely the Nehru Trophy boat Race at Punnamada, the

Payippad near Haripad, the Thiruvandoor, Neerettupuram, Karuvatta and


26

Thaikkoottam boat races are held at different parts of the district during

August-September. Thousands of people from all parts of the world come and

witness these races.

Industry and Commerce of Aranmula International

Airport Influence Zone:

Alappuzha is a central market in Kerala for copra, coconut oil, oil

cakes and coir. There are at present more than 62 oil mills in the municipal

area. The total production of coconut oil in this area is approximately

3500 tonnes. Alappuzha is the major production centre of coir and coir

products in the State. There are about four thousand production units

including a few big factories for coir in the district. There are at present

15 mechanised looms too. There are 41 cooperative societies in the coir sector.

There is a central coir marketing society for the export of the produce of

primary societies. Alappuzha district occupies a very important position in the

fisheries map of Kerala. Its western boundary is the Arabian Sea having

rich marine resources. More than 20 per cent of the total area of the district

is waterlogged, and the 20,000 acres of kari lands and 42,736 acres of paddy

fields in Kuttanad are suitable for pisciculture.

In the history of Journalism, Kottayam occupies a prominent place.

Kottayam is the centre of newspapers and periodicals. Four major dailies;

Viz Malayala Manorama, Mathrubhumi, Deepika and Mangalam are being

published from here. The number of periodicals comes about thirty.

Kottayam is one of the prominent rubber producing districts in Kerala.

The economy of Idukki is predominantly agricultural, Cardamom, tea,

tapioca, rice, pepper, rubber, coconut, sugarcane, coffee, arecanut, ginger,

lemon grass and vegetables are the most important agricultural


27

products of the district.

The following table gives an overview of industries located in the influential zone.

Professional Educational centers

An overview of the professional education centers in the influential zone

has been described in the following table.

District

Eng

inee

ring

college

Arts/

Sce

College

Med

ical

College

Nursin

g/pha

rmacy

College

La

w

Colleg

e

Ma

nag

eme

nt Coll

ege

Poly

tec

hni

c

TTI ITI

/IT

C

Ayur

vedh

a/ho

meo colle

ges

Den

tal

coll

eges

Pathanamthitta 6 10 1 4 - 4 4 11 25 1 -

Alappuzha 9 15 1 3 - 2 4 10 38 - -

Kottayam 9 29 1 4 1 - 3 3 21 1 1

Idukki 4 11 - 2 - 4 4 8 5 1


28

WHO Behind the project PROMOTERS


29

About the Developers

KGS Aranmula International Airport Ltd. will be the developer for

the proposed project. KGS Aranmula International Airport Ltd. is a company

registered under the Companies Act 1956 promoted by KGS group and

Government of Kerala. The share holding pattern of the company is as follows;

KGSpromote

rs 90%

Government of

Kerala 10%

KGS ARANMULA INTERNATIONAL AIRPORT LTD.

The Project is a Public Private Partnership between KGS Aranmula

International Airport Ltd and Government of Kerala. It’s in the model of Build

Own Operate ( BOO ). Cochin airport is the first airport under this model. The

upcoming Kannur airport is an undertaking of the State Government.

The Government of Kerala has extended extensive support to the project by

means of:

Classifying the project area as Industrial Land.

Establishing a Single Window Clearance for all approvals involving the

State Govt.

Investment of 10% of the Project Cost. This will be in the form of sweat

equity.

Allotting Government/ peramboke land needed for the project at market

rates.

The State Government has recommended our Project for approval at

many junctures.


30

Parts of a few letters are reproduced below:

Extract of LDF Cabinet Note of 2010 : “Considering the Public Untility and

the overall infrastructure development and taking into account the rapid

development the airport can give to trade, commerce, tourism, pilgrimage,

all the clearances required for the airport can be granted.

Extract of Letter 22514/ B3/ 11/1D dated 26.09.11 from Additional Chief

Secretary, Govt. of Kerala to Ministry of Civil Aviation.

“ Government is keen to support and encourage promising projects of this

nature involvint the wide public interest. Government of India may please

give the clearances sought for.”

Extract of letter DO/273/VIP/CM/2013 dated 26.09.2013 from the office of

Oomen Chandy, Chief Minister of Kerala to the Hon’ble Minister for

Environment & Forests.

“ The Commissioning of this project will ensure better connectivity to the

NRI population in the region, huge employment potential, comprehensive

development of the State, better connectivity to tourist spots like

Kumarakom, Thekkady, Munnar and the world famous pilgrim center,

Sabarimala temple.”


31

Promoters – an overview

a) KGS Group KGS is a well diversified g r o u p with interest in p r o p e r t y

development, construction, a n d infrastructure. The group is promoted

by Mr.K.Kumaran, Mr.Gigi George and Mr.P.V.Sanmugam.

The combined market value of the assets held by the group is US$ 1

Billion.

All the three Promoters are Professionally Qualified with very good

b usiness track record.

b) Other Companies under KGS group:

KGS Developers Ltd

is 50% partner in 3 Township Projects of KGS. 15

Large Projects across South India worth around Rs. 11,000 crores being

executed in 3-5 years. Rs. 3000 crores worth of unencumbered land held in

various parts of South India. Group concern has executed over 70

Residential Projects in Chennai in the last 20 years.

KGS Infrastructure Ltd.

The company is developing KGS International Residential Township

cum business park project on ECR between Chennai and Pondichery on

5,000 acres. This project will be executed in a span of 5 to 7 years.

The Project contemplates development of Business Park, Residential

Township, Merchant Airport, Global Medicity, Educational institutions as well

as a 50 MW solar plant.


32

Promoters of KGS Group Kumaran. K, B.E. , M.B.A .(USA) Having graduated in Engineering from

Anna University, Chennai and did his masters in management from DUKE

University, Kumaran brings in global experience for the group. As one of

the key promoters, Kumaran oversees overall administration of the group.

Kumaran hails from a renowned business family and owned a media

company. Kumaran is a sports enthusiast and an avid golfer.

Gigi George, F.C.A. With a finance background, George heads the group as

Managing Director. George, to his credit, has done the major business

diversification of the group including joint venture partnerships,

acquisitions, capital and Debt Syndication etc. George has travelled

extensively all over the globe.

Sanmugam. P. V, B.E. Sanmugam holds an Engineering degree.

Sanmugam has been an active promoter of a real estate company for last

20 years. He as Vice Chairman leads the Construction and liasoning

activities of the group.


33

HOW The execution


34

Approach for Project Planning and Execution

The Project is undertaken under the Greenfield Airport Policy formulated

by the Ministry of Civil Aviation, Govt. of India. It is a PPP (Public Private

Partnership) project with the Govt. of Kerala holding 10% equity.

Approvals for this Airport

The Project was contemplated way back in 2009 and the Airport Authority

of India was approached with a request to inspect and convey their Pre

Feasibility approval. After getting the Feasibility approval in 2009, efforts gained

momentum and Site Approval from Airport Authority of India, NOC from

Ministry of Defence and Ministry of Home Affairs followed suit. Obstacle Survey

was done by an approved entity of AAI and recommendations were received from

AAI for certain modifications in the runway. Steering Committee convened by

the Ministry of Civil Aviation and comprising senior Secretaries and Directors

gave their In Principle Approval for the project. Ministry of Environment &

Forests conveyed their Environment Clearance which has been challenged in

Court.


35

Details of Approvals / NOCs obtained by KGS Aranmula International Airport Ltd.

Date Reference No. Department Approval/NOC

1 15.10.09 AAI/C&C /Aranmula Airport 2009

Airport Authority of India

Aranmula Airport Feasibility Report

2 08.09.2010 GO No 1262/2010/Ind Industries Dept, GoK

State Government approval

3

24.02.2011 GO (P) No.54/11/ID Government of Kerala

Constituting “Greenfield Airport Aranmula Single Window Clearance Authority” and declaring the area as Industrial Area

4 24.08.2011 No 17(79)/11(DN-II/Ops)(669) Ministry of Defence NOC

5 28.10.2011 AV20015/015/2009-AD Ministry of Civil Aviation, GoI

Site Clearance Approval

6 17.08.2012 AV20015/015/2009-AD Ministry of Civil Aviation convened steering committee comprising of Secretaries/ High officials

In Principle Approval

7 16.01.2013 GO No (Ms) 04/2013 Transport Dept, Govt. of Kerala

1. 10% Equity by GoK 2. One govt nominee

director in KAIAL 3. Sale of poramboke

land by GoK

8 18.11.2013 F No 10-51/2010-IA.III MoEF Environmental Clearance (Challenged in Court )

After completion of the project, it needs to obtain License from DGCA

to start operations.


36

Technical Feasibility


37

Locational Advantage

The present site was chosen for the following reasons.

The topography of Kerala State is very unique. It has a coast line on the

entire western length and the eastern portion of the State is dominated

by the Western Ghats and it’s forests. Hence the choice of sites for an

airport project are extremely limited. Availability of a contiguous parcel of

land measuring 500 acres is a difficult proposition. Moreover, the land

should be fallow, meaning no cultivation currently being carried out.

As per the Greenfield Airport Policy, sufficient distance should be

maintained between two airports to ensure that commercial viability is

not affected. Three airports are already functioning, Trivandrum, Cochin

and Kozhikode. The fourth airport at Kannur is under construction.

Under the circumstances ,the proposed airport at Aranmula, situated

between Trivandrum and Cochin on the vertical belt and a good distance

away from Madurai airport, on the horizontal belt, is ideally located. With

this proposed airport, there will be five airports, almost equidistant from

each other in the North to South corridor of Kerala, effectively serving the

entire population of the State.

There is a naval station. INS Garuda, near Cochin and any airport site

has to be sufficiently at a distance between this naval airport, due to

security and communication reasons. Aranmula fulfills that criteria and

we hold a NOC from Defence Ministry.

The density of population in Pathanamtitta and adjoining districts

necessitate an airport for Central Travancore. The number of Non

Resident Keralites in Gulf and other countries will be greatly benefitted

by the location of the proposed airport. Kerala, amongst all the Indian

States, attracts the highest density of air travel. The proposed site

offers a gateway to Sabarimala, which attracts 50 million devotees

annually. The shrine is only 1 hour from the airport facilitating same day

arrival, darshan and departure in the evening for devotees from all parts

of India.. Sabarimala is the 2nd most visited shrine in India and the 3rd

most visited shrine in the world.

Tourists heading towards Vembanad lake, Kumarakom, Alapuzha will

find the location of this airport as most convenient for their itinerary The proposed airport will cater to the 50 lakh population of the four

districts of Pathanmthitta, Alapuzha, Kottayam and Idukki.

Considering the importance of the location, the Govt. of Kerala has

supported the project by declaring the Project Area as industrial land, as

well as taking up a 10% equity share in the project.

In Kerala, the roads are congested. There is only one National Highway

and it takes hours to reach even a distance of 100 km. This airport will


38

clear this congestion to some extent and save a lot of time and energy for

the vast population in our command area.

The wind is calm in this region giving an added reason to locate the

airport at this site.

The land has been purchased by the Project Proponent at market price.

There is no acquisition of land.

No eviction or forcible displacement of dwellers is involved.


39

Meteorological data The wind data have been obtained from the India Meteorological Department

(IMD), Thiruvanathapuram. Wind data of Alappuzha and Kottayam, the nearest

available observatories of IMD, which are closer to this project location has been

obtained. However, Alappuzha being a coastal area and Aranmula being inland

the comparison of wind data of these two places may not be very appropriate.

Kottayam being inland, with same longitude and having similar characteristics and

being close to the project location is more appropriate and considered for finalizing

the orientation of the runway. The wind data indicated that the wind is very

insignificant and hence the runway can be oriented in any direction. Considering

the geographical feature of the project site, orientation has been finalized in the

163 degree – 343 degree direction, which has the maximum length. Accordingly

the r u n w a y orientation has been finalized as 16-34.

Runway orientation

The IMD wind data of Kottayam has been taken as the basis to arrive

at the orientation of runway. The wind data shows that it is calm in all season.

Hence any orientation of runway is feasible in this location. Hence the orientation

fixed for the runway is 16-34 to suit the availability of land.


40

Ground features

Project location is more or less level ground and some of the area is

planted with rubber. A little portion of the project site is slightly elevated and it has

been already cut to pave the existing kutcha strip. This high ground has red

mooram soil. Rest of the ground is black cotton soil.

Due to the fact that a stream is running across the runway strip, design of the

runway includes a culvert over the stream with three spans of 15 metres each. It is

also contemplated to build a dyke around part of the runway to drain the other minor

streams and lead it to the main stream. All engineering efforts will be taken to

ensure that the runway strip is not flooded, even during heavy rainfall.

Availability of Construction Material

All construction material including a small quantity of landfill,

topsoil, cement, bricks, steel and bitumen are available in the command

area.

Obstacle study

A detailed obstacle study conducted by Aero Survey India, a leading Aero

Survey Company in India and specialized service provider for aerodromes &

helipads to meet various operational requirements of Airport or Heliport in the form

of Obstacle Survey / Topographical Survey/ Aeronautical Charts/ Survey Report,

Pre-Feasibility Inspection (Site Inspection) and preparation of Preliminary Report

and Technical Feasibility Report/ Project Feasibility Report.


41

From the study conducted in and around the proposed project area the following

obstacles were found;

As per the obstacle survey report, there are no major obstacles found for this

project. Only few minor obstacles are identified such as Mobile Tower,

Plantation trees which all can easily be removed.

There is a mast of a temple, situated from 900 metres from the boundary wall,

which is considered as an obstacle and accordingly the runway has been displaced

by 285 metres on the northern end, as per the recommendations of Airport

Authority of India.

Airport Features

The Aranmula International Airport will be built in three years and will be

able to cater to wide bodies aircraft like Airbus A-320 / Boeing 737.

The runway, taxiway, aprons, isolation bay, security compound wall,

peripheral security roads, fire station, drainage system, terminal building, Main

access roads, car parking area, water distribution system, electricity receiving

and distribution system, sewage treatment plant, etc are planned to be developed.

NACO, worldwide specialists in airport design are the Airport Consultants for the

project.

The Location

The map of Pathanamthitta district is shown below indicating the proposed Site.


42

Land Requirement

The land required for airport operation is 490 acres. Out of this 350 acres

have already been bought and registered in the name of the company.The Govt. of

Kerala is transferring 41 acres of Govt. and Peramboke land in favour of the Project,

for a consideration. The rest of the land required for the Project is under negotiation.

Runway

The master plan proposes a Runway of 3100 x 45 M and a Runway strip of

3220m x 300 m to meet the requirement of wide bodied aircraft. The airport code is

4D.

Out of the two options on the type of runway, i.e. rigid (cement concrete) and

flexible (asphalt concrete), flexible pavement is chosen to facilitate strengthening and

extension.

Taxiway

Half taxiway is provided in the master plan, connecting to the main apron.

The taxiway has been provided with the same strength of runway. The dimensions of


43

the taxiway will be as per specifications of DGCA.

Apron

An apron has been provided for with to the size of 200 x 150 M for parking

three A- 320 / Boeing 737 flights at a time. Although a rigid pavement is best suited

for aircraft parking stands, flexible pavement is proposed for operation.

Terminal Building

The terminal building is planned keeping appropriate clearance from the apron. The

city-side will be suitably developed with car-park and other amenities for visitors

and passengers. Car parking planned initially is for a capacity of 400 cars at a time.

Separate Technical block cum control tower is envisaged.

Public Address (PA) system, flight information displays, operational

requirements such as counters, back up rooms, passenger amenities and stand by


44

power system are also provided for. A full-fledged terminal building of 3,700

square meters is being proposed to cater to 500 incoming and 500 outgoing

passengers at a time, with all modern amenities.

Approach Road

A four lane approach road (23 m wide) is proposed from the Kozhencherry to

Chenganur State Highway ( which is abutting the site).

Security measures

Compound wall of 2.97 meters height with Goose-neck overhang as per the

Bureau of Civil aviation Security (BCAS) is being provided all around the operational

area. A peripheral road for patrolling is also proposed. Further four watch towers at

strategic locations are also provided. Anti-highjack measures for passenger and

baggage handling is also taken care of as per BCAS norms.

Segregation of passengers and visitors

Complete segregation of arriving and departing passengers and visitors is

proposed in the terminal building passenger flow. Visitors will be permitted up to

lobby area only or to visitor’s gallery.


45

Gates provided

A minimum of two gates are provided for operational area (one at terminal

building and the other near to aviation academy) which will be guarded. Also two

crash gates are provided at both ends of extended centre line of runway for easy

and fast access of crash fire tenders in case of any untoward incidents taking place

in the approach path or take off area.

Fire Station

A suitable rescue and safety services center to accommodate 2 crash fire

tenders with 4000 liters water capacity and other mediums and other vehicles such

as rapid intervention vehicle ambulances, motor vehicles are planned along with a

watch tower and other associated facilities (office room, etc.). A water sump is also

provided for refilling the crash fire tenders. Sufficient hardstand in front of the fire

station is also planned with rapid connecting roads to the runway and apron.

A Peripheral lighting along the boundary wall is also proposed considering the

security aspects of the airport.


46

Area lighting

Illumination is provided for the operational area with high mast lights. Three

numbers of 30 meter high masts is provided in the airside and two numbers are

proposed for the land side near to the terminal building/car park.

Associated facilities Within building

In the terminal building provision has been made for check-in counters, X-

ray baggage machine, segregated area for passengers needing assistance, reserved

lounges for VIP & VVIP passengers, provision for medical center for passengers

requiring urgent medical attention, area for left luggage, duty free shops, passenger

waiting couches, restaurants, taxi counters, curio shop, airline offices, book stalls,

snack counters, bank counters security check area, toilet, water facilities, etc.

The terminal is proposed to be environment friendly so as to apply for

classification for LEED’s Green Building.

Land side facilities

The land side facilities provided includes the visitors waiting area, kiosk for

coffee/tea, etc.


47

Utility Buildings

Power – 11 KV sub-station to ensure dedicated power for seamless operation is

also provided within the premises. Generator backup of suitable rating is also

provided for the redundant power supply. Suitable power distribution system shall be

done with underground cabling system. Solar Power Plant with capacity of 1 MW is

proposed.

Water – A dedicated water supply line will be provided from own sources in order

to cater the requirement. A water distribution network is also planned within

the premises. A water supply system is planned with overhead tanks and

underground tanks. An overhead water tank is planned above the terminal

building. On operations water requirement would be 4 lakhs liters per day.

Hence an overhead tank of 40,000 liters capacity and an underground tank of


48

8,000 liters capacity are proposed.

Effluent Treatment Plant (ETP) – It is proposed to treat all the effluent from

the airport and re-circulate it for irrigation purpose. This is to reduce wastage of

water. However Septic Tank and Soak Pits are required to be implemented for

sewage disposal.

Drainage System

The drains and dikes are provided outside the runway strip along the

boundary. Sufficient slope, with an incline as per the International Civil Aviation

Organisation’s Annex 14, is provided in the operational area towards the drains

assuring that logging of water is avoided. The minor stream located North and South

of the runway is also diverted into the dike along with the drainage provided. The

water collected through dike is proposed to be dispersed through downstream side on

the west of the plot where the natural stream is available, which in turn disbursed to

river Pampa. As far as the natural stream is concerned, it is proposed to build a

culvert with three 15 metre spans under the complete operational area on which the

runway, its shoulders and obstruction-free area will be laid.

Control tower/Operational equipment rooms

Dedicated control tower is planned with full-fledged meteorological stations to

monitor the climatic parameters of the airport. The tower also has office for staffs

and control equipments.


49

Landscaping

Landscaping is planned both on air side as well as city side for

aesthetics/pleasant feeling, including approach road and car parking areas.

Moreover landscaping and greenery are important for noise abatement.

Aviation Fuel Station

A full-fledged aviation fuel station is planned and suitable land and its

location are shown in master plan for parking oil bowzers.These will be constructed

by a Public Sector.


50

TRAFFIC ANALYSIS


51

Traffic analysis Aranmula airport, situated in Central Travancore, has the unique

advantage of being located in a state, which has the highest air traffic growth,

year on year. During the period 2005-06 to 2013-14, the Compounded Annual

Growth Rate ( CAGR) is a healthy 12.60%. This is due to the fact that Kerala has

the highest number of Non residents per capita, high per capita income and has

attractive tourist attractions. Moreover, it is the closest airport to Sabarimala

shrine, which attracts the second largest number of devotees in India. It is also

the third largest shrine in the world, in terms of number of devotees visiting.

The accompanying map will clearly indicate the strategic location of the

proposed Aranmula airport.


52

KERALA AIR PASSENGER TRAFFIC (DOMESTIC + INTERNATIONAL)

AIRPORT 2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

COCHIN 18,86,614 25,63,236 33,44,124 33,58,254 38,62,418 43,40,725 47,17,650 48,80,773 53,83,114

TRIVANDRUM 13,24,365 17,81,202 21,01,904 19,54,802 22,88,084 25,26,885 28,14,799 28,39,021 29,34,434

KOZHIKODE 9,60,428 11,23,622 13,16,763 16,78,095 18,63,869 20,59,979 22,09,716 22,73,703 24,64,662

TOTAL 41,71,407 54,68,060 67,62,791 69,91,151 80,14,371 89,27,589 97,42,165 99,93,497 1,07,82,210

COMPOUNDED ANNUAL GROWTH: 2005-06 TO 2013-14:12.60% KGS ARANMULA INTERNATIONAL AIRPORT ESTIMATED PASSENGER (DOMESTIC + INTERNATIONAL) TRAFFIC AT ARANMULA (LACS)

FORECAST 2017-18

2018-19

2019-20

2020-21

2021-22 2029-30

FORECAST BY COMPANY 15.80

17.38 19.11 21.02 23.13 45.07

ERNST & YOUNG 17.50

22.40

25.70

29.60 34.00 67.05

NEIGHBOURING AIRPORTS IN KERALA

18.26

20.09

22.10

24.31

26.74

52.10

INDIAN AIR TRAFFIC GROWTH FORECAST (MIN. OF CIVIL AVIATION)

16.42

18.24

20.27

22.52

25.02

57.60

INDIAN AIR TRAFFIC GROWTH FORECAST (IATA)

15.98 17.51

19.31

21.27

23.43

50.22

Assumptions 1) Company forecast : based on of diversion from neighbouring kerala

airports and fresh generation of air traffic due to sabarimala and tourism

10% growth each year

2) E&y: based on demographic breakup of demand (nrk/international

tourists/domestic tourists/pilgrimage) and 15% growth each year for six

years

3) Neighbouring airports : based on 15% market share of cochin and

trivandrum airports and 10% growth each year.(source:aai)

4) Based on 11.1% cagr during 2016-2020 – min.of civil aviation

5) Based on 10.2% CAGR- IATA


53

FINANCIALS


54

Project Cost

The estimation of Project Landed Cost is as under:-

The total cost estimated for Phase-I is Rs 550cr. The detailed break-up of

project cost for Phase-I of the project is tabulated below:

Sr.

No.

Particulars Amount in Rs.

A Land 1,500,000,000

B Site Development 940,029,285

1 Compound Wall 163,467,983

2 Operational Boundary Wall 19,607,958

3 Site Levelling 449,645,440

4 Parking 228,000

5 Landscaping 70,880,000

6 Dike Around the Site 236,199,905

C Runway 972,052,519

1 Runway 16-34 876,753,628

2 Apron 78,957,436

3 Main Taxiway (Apron) 16,341,455

D Terminal Building and ATC 752,863,739

1 Fire Station & ATC building 121,111,120

2 Terminal Building 631,752,619

E Approach 212,643,852

1 Connecting Road from Apron Fire Station and

ATC

12,865,250

2 Approach Road 125,773,816

3 Other roads 74,004,786

F Others 240,000,000

TOTAL CIVIL COST 4,617,589,395

G Contingency Cost 117,700,000

H Preliminary Cost 92,300,000

I Interest During Construction 677,500,000

Total Estimated Landed Project Cost 5,505,089,395


55

Means of Finance

The Estimated Project Cost is Rs 550 cr.

► Debt -Rs. 330 cr

The Promoters are in discussion with Lenders like State Bank of India, Canara

Bank & Punjab National Bank to finance the above indicated Debt.

► Equity - Rs. 220 cr

The Equity portion shall be brought in by the Promoters / investors on the

basis of the Project requirement.

Project cost Spending Plan (Amount in Rs.Cr)

Construction Cost Total Upto 2015-16 2016-17 2017-18

Land 150 150

Site Development 94 56 37 -

Runway 97 18 39 40

Terminal Building 75 - 30 45

Approach & Runway Lighting 21 6 9 7

Others 24 7 10 8

Total 461 237 125 100

Contingency Cost 16 4 6 5

Preliminary Cost 9 5 2 2

Project Cost excluding IDC 486 246 133 107

Int. During Construction

(IDC)

64 9 24 35

Project Cost (including IDC) 550 255 157 142


56

Financial Projections (Amount in Rs.Cr)

The financials are projected based on traffic anlaysis and data & information

available from Airports Authority of India Ltd / AERA.

Particulars 2018-

19

2019-

20

2020-

21

2021-

22

2022-

23

2029-

30

REVENUES

Aeronautical Revenue

- Landing Charges 8 10 12 13 14 28

- Passenger Service

Fee

18 21 23 25 28 54

- User Development

Fee

35 41 45 49 54 105

Non Aeronautical Revenue 15 16 18 20 22 42

Total Revenue 76 88 98 107 118 229

EXPENSES

Operating cost 7 8 9 10 11 21

Employee cost 11 13 15 16 18 34

Administrative and

Overhead Cost

18 21 23 26 28 55

Total expenses 36 42 47 52 56 110

EBIDTA 40 46 51 55 62 119

Interest 34 32 29 24 17 -

Depreciation 8 8 8 8 8 8

EBT (1) 7 14 24 37 112

Tax - 1 3 5 7 22

PAT (1) 5 12 19 30 89


57

Financial Assumptions

► Total Loan Tenure: 15 years

► Moratorium Period: 2 years

► Debt: Equity Ratio: 60:40

► Cost of Equity: 18%

► Cost of Debt: 13%


58

Overall Master Plan

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