consortium of Larsen & Toubro, Siemens and Zurich
Airport, which has promoted Bangalore International Airport
Company, has short-listed IL&FS, SBI Caps, ICICI Securities
and IDFC for the merchant banking activities of the airport
a senior L&T executive: These four merchant
banking firms have made presentations to us recently.
We will appoint one of these firms by the end of this
month as our merchant banker for the project.
appointed, the merchant banker would advise the consortium
to finalise the debt equity ratio of the Rs 1,200-crore
project and would mobilise the debt rupee component for
L&T-led consortium has a 74-per cent stake in the
project. The Karnataka government will hold 13 per cent,
while the remaining stakes will be held by the Airports
Authority of India. Out of the total 74-per cent promoters
equity, Zurich Airport holds a 40-per cent stake, while
L&T and Siemens hold 17 per cent each.
L&T official says the central government has foregone
foreign travel tax (FTT) and inland air travel tax in
favour of the promoters of the airport project with the
rider that the Karnataka government provide land and rationalise
the 23-per cent sales tax it levies on air turbine fuel.
a sales tax of 4 per cent has been suggested to reduce
the states burden of supporting the project substantially,
the official adds. As per the finance ministrys
proposal, the FTT component of Rs 25 crore will accrue
annually to the new airport (at Rs 500 a piece from the
projected half-a-million outbound passengers each year).
L&T official says the company is in talks with IDBI
and ICICI Bank and various other banks to mobilise the
required equity component of the project. The institutions
were very positive about the project. We hope mobilising
equity may not be a problem.
foreign promoters of the project, Siemens and Zurich Airport,
are expected to mobilise the dollar component of the project.