Bangalore International Airport Ltd readies realty development
Bangalore: Bangalore International Airport Ltd (BIAL), which operates the Bengaluru International Airport, has started preparing the real estate development plan that will help raise its non-aeronautical revenues.
oing by the value of the deal with L&T-Oberoi consortium at Rs 35 crore per acre for the 4-acre hotel property on the airport land, the total price of the 515 acre real estate can be pegged at Rs 530 crore. Isaac George, chief financial officer, GVK Power and Infrastructure, one of the partners in the consortium that runs the airport, said the plan would be implemented next year.
It will involve developing the 515 acre real estate near the airport with an floor space index of 2.5 in a phased manner with a thrust on commercial usage such as building a maintenance, repair and overhaul facility, cargo & logistics centre, airport city, hotel and conference centre.
Once it kicks off, it will take away BIAL’s focus from aviation business to overall development of the airport city that will generate more than 50% of its revenues.
BIAL earns 34% of its revenues from non-aeronautical services such as retail and food & beverages.
George said the airport operator wants to take it up to 60% eventually to evolve a revenue model that would optimise airport resources.
“BIAL has been making profit from the first year of our operation, but a 60:40 split of non-aeronautical and aeronautical income would give a better return to our investors,” he said.
BIAL recorded an operating profit of Rs 211.5 crore in FY10.
The shift in the revenue mix of the airport would alter it to hybrid model, which would see cross-subsidisation of passenger charges by non-passenger earnings.
It may also see the demand of airlines to reduce airport levies, such as landing, parking and navigational charges, being met.
Once BIAL improves its non-aeronautical income,the Airports Economic Regulatory Authoritymay consider revising the current levies being charged by BIAL. “Our income from realty operations would evolve a hybrid-till model, which means non-aeronautical revenue would be a large part of our total revenue,” said George.
Sandip Bansal, an analyst with UBS Investment Research, said; “It (GVK) expects BIAL to remain under a dual-till model, though it could have a worst case 30% subsidisation like Mumbai, and thus evolve into a hybrid model.”
Bengaluru International Airport (BIA) is set to get a second terminal soon
Bangalore: With the number of travellers who take to the skies rising steadily, the Bengaluru International Airport (BIA) is set to get a second terminal soon. The Bengaluru International Airport Limited (BIAL) has submitted a proposal for the construction of the second terminal to the state government. Tourism and infrastructure minister G Janardhana Reddy made an announcement to this effect at the Global Investors Meet (GIM) on Friday, and said that the government would work towards clearing the proposal at the earliest.
The Board of Directors of the BIAL recently approved plans for the expansion of passenger Terminal 1 at the airport. Presenting plans for improving air connectivity in the state.
Global Investors' Meet promises 2.81 lakh jobs in IT sector
The tone for a new world and new method of computing was set on Friday. And the government was willing to travel the extra mile to make it a reality
Commitments to the tune of Rs45,500 crore was made at a session on the IT sector at the GIM.
Ashok Kumar Manoli, principal secretary, department of IT, BT, Science and Technology, said that the Centre had approved the ITIR (information Technology Investment Region) near the Bengaluru International Airport in Devanahali.
“ITIR will be an integrated township with walk to work facilities and will be only 12km from the airport,” he said, while calling the project a “magnet of attraction”.
Minister for IT & BT Katta Subramanya Naidu assured improved infrastructure in the city. Addressing the session, he revealed his dream: “Bangalore should be able to capture one fifth of all IT-related work globally in a few years.”
The new world was the theme of the many speakers. Delivering the keynote, Kris S Gopalakrishnan, CEO and managing director of Infosys Technologies, said Bangalore needed to be part of a new world of computing – pervasive computing (a system where almost every device has computational capabilities).
Harsh Manglik, chairman and geography managing director for Accenture India, and chairman of Nassco,m termed Bangalore as a talent magnet. He said that there were about 2,000 technology-related companies in the city.
Infosys would investment Rs710crore in the ITIR, creating 12,000 jobs, while Manyata Developers Limited would build service apartments and an IT&BT Park with an investment of Rs1,880 crore. The park was likely to generate more than a lakh jobs.
Other companies which signed MoUs on Friday included Wipro (Rs477crore), Larsen & Toubro (Rs650 crore) and Chandra Developers Pvt Ltd (Rs459.98crore).
Invest in the banglore in such areas that will fetch you good returns with low investment
As sarjapur, Anekal , jigini indusrtial area
For eg :-if you take sarjapur there is upcoming Hosur IT park,infosys campus All these are upcoming
Try to go for good returns with minimum investment
thanks & Regards
what's there in sarjapur apart from infosys and wipro nothing is there .
Anyways It is saturated now ,It will hit recession once every four years .Aviation ,aerospace, Hardware ,Nano technology and textile are the future North Bangalore is a complete Package while south Bangalore has just It SOuth Is a saturated market with no appreciation.Devanhalli,Hebbal and yelahnaka infact were going strong even during recession prices increased by 10-20% while prices fell in other parts of bangalore this sum's it all up ,NOrth Bangalore is hot and will get hotter as time progress
Karnataka plans to set up an exclusive healthcare city near Bangalore International A
Karnataka woos medical healthcare and wellness providers
Bangalore, Jun 4, (PTI):
Karnataka on Friday aggressively wooed healthcare providers by showcasing the state as an ideal investment destination with huge market and demand potential in various health related fields, including medical tourism and medical equipment.
"It is estimated that patients from 42 countries visit Bangalore to get treatment", Ramachandra Gowda, Minister for Medical Education said at the Global Investors Meet here on Friday.
"Karnataka is the knowledge hub of Asia. Bangalore has been ranked number two in existence of health facilities in the country in a research by National Population Stabilization Fund with the National Informatics Centre", he said.
Outlining opportunities in the healthcare and wellness sectors, he said there is a need to set up sophisticated super speciality Hospitals in all districts to provide the best treatment at affordable rates.
The hospitals need to have sophisticated equipment like high versions of Direct Digital Radiography, MRI machines, cyber shot cancer treatment equipment and CT scans, he said.
The minister said an estimated 12 per cent of the world's total business turnover is in the field of medical equipment. India, which has one sixth of the world's population, has ample opportunities in this space.
In the fast growing field of Ayurveda,Karnataka offers an advantage in terms of being a resource for herbs needed to produce such creams and oils in Ayurveda.
Karnataka plans to set up an exclusive healthcare city near Bangalore International Airport, which again spells out ample opportunities for investors seeking to invest in the state in the medical healthcare field, he said.
Dr Devi Shetty, Chairman, Narayana Hrudayalaya said India produces among the largest numbers of doctors and nurses and medical technicians in the world.
Its investor-friendly ambience,availability of best medical equipment, high quality standards, rigid blood bank rules and medical visa for foreigners has seen growing investments in the field.
A supportive government and bureaucracy in Karnataka provided the right ambience for those looking to pump money in the state, he said.
The hope of Bangalore to be home to the tallest tower in the country is still alive. This hope to construct more than 100-storey World Trade Centre (WTC) comes from Abu Dhabi, home to Burj Khalifa, tallest building in the world. A delegation from the UAE led by NRI industrialist B R Shetty involving Omair Al Dhaheri, chairman of MIDIEN Holdings, Syed Khali, Group executive director and Mustafa Galadari Group, who participated in the Global Investors’ Meet (GIM), presented the blueprint to CM Yeddyurappa.
“We are clear that our venture will not be in the Race Course. The Abu Dhabi based company has evinced interest near BIA and the tower will be modelled on the lines of Burj Khalifa,’’ Shetty told The Times of India.