Construction work on the proposed green field international airport at Bangalore is expected to begin in November this year, a top airport official said in Bangalore.

"We are expecting that we will be able to finalise the concessional agreement by month end. Our financiers ICICI will take three months for due diligence for the financial closure by October end. Start of construction will be feasible by the end of November," Bangalore International Airport Ltd chief executive officer Albert Brunner said on Tuesday.

Interacting with industry leaders at an event organized by the Federation of Karnataka Chamber of Commerce and Industry, Brunner said discussions were being held with the

Union ministry of finance for the concessional agreement on Tuesday at New Delhi and an agreement was likely to be reached by the end of this month.

He said the finance ministry had sought concessional fee from BIAL, which was non-existent in the initial draft agreement with the ministry of civil aviation.

Brunner said the $245 million project was likely to be operational by the end of 2006 to initially cater to four million passengers.

Of the $245 million, the state grant would be $80 million with the rest raised through debt from ICICI, and equity by Siemens Project Venture (40 per cent), L&T (17 per cent) and Unique Zurich Airport (17 per cent).