145;Huge capital needed for airport restructuring146;

Civil Aviation Secretary Ajay Prasad indicated on Thursday that the capital investment for the restructuring of Delhi and Mumbai airports could range between Rs 5,000 crore to Rs 10,000 crore for each airport. He added that Public Investment Board PIB was likely to meet next week to examine the Indian Airlines8217; proposal for acquiring 43 aircraft.

8216;8216;A massive capital investment is needed in the next five years, somwhere between Rs 5000 to Rs 10,000 crore for modernising each of the two airports,8217;8217; said Prasad talking about the requirement of funds. But he was quick to add that the estimates were 8216;8216;very preliminary8217;8217;. Prasad said the AAI, which would have 26 per cent stake in both the joint ventures, was not in a position to provide the required funds due to its 8216;8216;commitment for on-going capital projects and obligation for maintaining loss-making airports8217;8217;.

Further, Prasad indicated that PIB could meet sometime next week to examine IA8217;s fleet acquisition plan. He, however, did not rule out the possibility of the government giving a letter of guarantee for the airline to borrow funds for the procurement which is estimated at around Rs 10,000 crore.

The Civil Aviation Ministry plans to move a cabinet note to expand the equity base of Air India and Indian Airlines by way of a government contribution. In the case of IA, the equity infusion amound could be to the tune of Rs 325 crore.