If we don’t meet our targets, there are huge liquid damages: Rao

Excerpts:

What are going to be your priorities once you take over the Delhi airport?

We have to improve airport operations. There are improvements we have to do within three, six, 12 months. Otherwise, there are huge liquid damages, which are part of the Operation, Management and Development Agreement (OMDA). By 2010, before the Commonwealth Games, we hope to have a new building in place with international standards. We have 12 challenges before us, including the upgradation of terminal capacity up to 2010. We also hope to lower the dwell time of cargo to 24 hours by then.

What can we expect in the next few months?

In Phase 1, within three months we have to lift the face of the present building. There are early success targets we have in trolley management, queue management, seating, parking, landscaping and so on.

How much money is at stake?

How will you finance these phases?

We are allowed a debt-equity ratio of 1:3. In the first phase we will have to bring Rs 550-600 crore. About Rs 200 crore of this equity has already come into the company, in the bank. We have unconditional debt commitments from ICICI Bank and Punjab National Bank. We have about Rs 4,000 crore of sanction letters from them.

Any plans for an IPO?

We don’t plan to go public immediately. Most of our financing will be internally generated. At some stage we may go for an IPO. Today, there is no dearth of money to fund infrastructure projects. We are also looking at private equity.

So, why Delhi, why not Mumbai?

The Mumbai airport is a very difficult airport — there are slums around it, there is a cross runway and so on. Also, Delhi is the future. The potential is huge. The Commonwealth Games will be happening here. The infrastructure is much better than Bombay’s. We hope to turn Delhi into a transit hub. We also hope to integrate with the Metro. We want to make the Delhi airport the world’s best, a landmark, where people, both Indians and foreigners, should feel good. It should be the pride of India.

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