SP to offer Kushinagar airport project to developers on a platter

The Rs 354-crore project,an integral part of the development of Buddhist Circuit,will be spread over 525 acres of land. The airport is expected to directly connect eastern Uttar Pradesh to Southeast Asian countries like Thailand,Singapore,Malaysia,China,Japan as well as West Asia.

Among the demands that would now be part of a revised Request for Proposal to be issued by the state government soon are: have the user development fee (UDF) notified from the Union Ministry of Civil Aviation before construction begins; provide direct electricity supply of 3.5 MVA and bear its cost; shift high-tension electricity line above the proposed land; and widen the road leading to the airport.

Earlier,the state government had sought Centre’s approval for viability gap funding (VGF) for the project,which is claimed to be the first greenfield airport project in the country to get 20 per cent VGF approval,of which the state has now assured the developers. Those seeking the least VGF,which would be around Rs 70 crore,will reportedly get the project.

“This is the government’s best shot at present. All the statutory clearances from Union Ministry of Environment and Forests have been accorded to the project. The entire 525 acres of proposed land has already been acquired. In a rare step,the Union Ministry of Civil Aviation has notified the UDF even before the start of construction. Besides,it is also the first greenfield airport project in the country to get approval for VGF from the Centre,” explained a senior government officer.

He informed that the Centre has notified Rs 1,300 as UDF for outbound international passengers and Rs 200 for outbound domestic passengers. In a yet another benefit to the developer,these charges would be applicable for five years from the date of commencement of the project.

The project had been hanging in balance for the past five years after it was announced by the then Mayawati government in 2008 to promote Buddhist tourism in the state.

Developers gave it a cold shoulder then,doubting its viability.

The SP government reduced the project size to attract investors and floated a fresh Request for Qualification in January this year.

Eight renowned infrastructure companies – including Gammon,GMR,SREI,Essel Infra,Supreme Infrastructure,GKC,GR Infra and Transtroy – had qualified for the project. However,they demanded additional benefits during a pre-bid meeting in June this year. The decision had been pending since then.

But now,with the state government agreeing to developers’ several key demands,the project,as a senior official puts it,is “ready to be served on a platter to the developers”,and all the more with avaiation ministry having already notified the UDF charges.

“The revised Request for Proposal would soon be taken to state cabinet for final clearance. After that,the developer would be given 15 days to submit their bids,” the official said.