Regional Airport Holding International Ltd (RAHI) will invest Rs. 490 crore to develop an airport each in Shimoga and Gulbarga districts of Karnataka . The two projects are part of the state government's plans to develop five airports in the state under the PPP model on a build operate and transfer (BOT) basis. Airports have also been planned for Bellary, Bijapur and Hassan.

RAHI, a joint venture between IL&FS Transportation Network and Comet Infra Development, will also start regional airlines by mid 2012, in tandem with the development of the airports. "We are targeting airports with one million passengers per annum and our vision is to pioneer in regional airports. We will also develop geo-specific industry clusters," Comet Infra Developments director Umesh Kumar Baveja said.

RAHI will induct five 10-50-seater aircraft in five years to service the proposed airports at Shimoga and Gulbarga. The company plans to have a portfolio of 99 regional airports by 2025. "We will look at connecting Bangalore and Mumbai with Shimoga. The idea is to start our own airline and then bring in other operators," said Sandeep Mendiratta, head of aviation business at IL&FS Transportation Network.