BIAL gets a new identity-Bangalore Airport City
The Bangalore International Airport is all set to make news as the GVK Group, the promoter of BIAL, announces to promote real estate around the airport area. GVK has been planning to come up with an airport city that would encompass workplaces, residential units and social infrastructure for commuting passengers.
However, according to BIAL officials, the areas for realty development around the airport have not been identified yet. A proper plan needs to be developed for construction and government approval. In addition to such plans, BIAL’s terminal expansion to deal with with a large capacity of 55 million passengers has added to its overall credentials.
A new city
Tagged with a new name-Kempegowda International Airport, the development of the airport region is visualized as a flow of activity. The proposed preliminary development, which is expected to see the light of the day by the end of 2020, comprises of 4 distinct concepts. Such concepts include:
- Centre of excellence
- Business District
- IT/ITes
- Central Area
Funding for the same
In a move to encourage real estate around the airport region and accumulate funds for it, BIAL has submitted its proposal with the Airports Economic Regulatory Authority to increase the UDF-user development fee. The decision to increase the UDF is still pending and experts anticipate 3-6 months for its completion. At present, a domestic passenger is charged RS 260 per person while for an international passenger it is Rs 1070.
Government support in this regard will further speed up the real estate development process. A reduction in VAT on aviation turbine fuel from 28% to 5% will be an appropriate move by the state government to boost the growth of the aviation sector. Such a reduction will strengthen the competitive edge of Bangalore and transform it into an aviation hub for numerous companies.
