Marg eyes strategic partner for Bijapur airport project

Mumbai: Marg, a Chennai-based company engaged in infrastructure development, said it plans invest Rs 108 crore in the Bijapur airport project to begin with and is looking for a strategic partner for the same. The company recently won the contract for building and operating the airport.

“We are looking for an experienced strategic partner who would share part of the equity, and add value to the project,” Managing Director of Marg, Mr G.R.K. Reddy, told newspersons.

Of the Rs 108 crore, equity portion will be Rs 32 crore and the rest will come through debt, he said. The ground breaking was on December 7 and operations are likely to begin from 2011.

The airport is slated to come up on a 727-acre land at Burnapur village near Bijapur. Under a public-private partnership (PPP) agreement, Marg will design, develop, operate and manage the airport for 30 years. The agreement provides for extending the period further.

The airport would handle only small aircraft such as ATR, to begin with. “There will be only four landings and take offs initially,” said Mr Reddy. He added that the company is aiming at regional development projects.

Marg is also involved with developing Karaikal Port in Puducherry , which will handle 5 million tonnes per annum of cargo in the first phase. Financial closure of Rs 416 crore for the first phase is complete and commercial operations will commence from April 2009.

The second phase will involve an investment of Rs 1,300 crore of which Rs 300 crore will be equity and Rs 1,000 crore will be debt, said Mr Reddy. The company will look for a strategic partner to share equity in port project as well, in the second phase, he said. Marg Swarnabhoomi, the company’s Special Economic Zone project, has also achieved financial closure for the first phase to the tune of Rs 406 crore.

The company’s shares gained nearly 5 per cent on Thursday and closed at Rs 41.70.