Creation of new airport infrastructure is much in the air lately. Few new efforts are paving the way for additional airport infrastructure - through the creation of the new Kochi international airport and the expansion of the Kozhikode airportas case models.

Kochi , one of the fastest growing cities in India and the business hub of Kerala is now serviced by the existing airport belonging to the Indian Navy and is unable to cater to the growing needs of air traffic and does not have night landing and take off facilities. One of the pioneering initiative recently taken is for the development of an airport on build, own and operate (BOO) basis, by a public limited company with private sector participation and financial assistance extended by HUDCO and attracting private capital. Cochin International Airport Ltd (CIAL) incorporated in 1994 has to construct, maintain, own and operate an airport of international standards at Nedumbasserry. CIAL has the distinction of being a multi-modal transport facility having direct links with railways, highways and waterways, as being encouraged by Government of India's aviation policy.

The project with a total cost of Rs 265 crores, is funded through equity contribution of Rs 65 crores by the State GovernmentInstitutions, financial institutions, banking sector and private contribution, and HUDCO loan of Rs 113.2 crores, and additional term loan from banks. The project revenue inflows incorporate, in addition to the traffic revenues and non-traffic revenues, a surcharge on the international air tickets which would enable servicing the debt-repayments. The project has been projected to payback in a period of just over six years.

Two hundred hectare of land development for related growth needs brings in additional viability. The surcharge to be paid by the overseas passengers will be only 20 per cent of the additional expenditure anyway incurred by them for travel by road from other air ports The Kozhikode airport expansion project with a total project cost of Rs 110 crores is equally innovative.

The Airports Authority of India has been offered Rs 60 crores as interest-free loan by the Government of Kerala. HUDCO has sanctioned a loan assistance of Rs 60 crores and the repayment would be ensured throughcollection of various service charges and a surcharge at Rs 500 per passenger.

The above two initiatives have indeed shown the emerging opportunities for public-private and peoples' participation. The introduction of user-pay instrument of surcharge for debt servicing and running costs is indeed an innovative method and has shown a new way to ensure sustainability for many new airport projects.

It is take off time for not only these two projects, but for many such innovative ventures to come up with flying colours.

The author is the CMD of Housing and Urban Development Corporation