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This is an archive article published on May 4, 1999

Fresh pact for Bangalore airport project

Bangalore, May 3: The Bangalore International Airport project at Devanahalli, near here, was given a new lease of life, as a fresh memora...

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Bangalore, May 3: The Bangalore International Airport project at Devanahalli, near here, was given a new lease of life, as a fresh memorandum of understanding to implement it was signed on Monday following the Tata-led consortium’s decision to back out of the proposal.

The project would be implemented by a joint venture company with the Airports Authority of India (AAI) and the Karnataka government holding 13 per cent equity each and the co-promoter the remaining 74 per cent, he said.

Civil aviation minister Ananth Kumar announced that the foundation stone for the project, expected to cost between Rs 1,200 crore and Rs 1,500 crore, was proposed to be laid before July 1 and the work would be completed in 36 months. Global tender documents and preliminary information memorandum would be prepared in 10 days, after which steering committee would be formed and global tenders invited, he added.

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The Tata-Raytheon-Singapore consortium had signed an MoU with the Karnataka State Industrial Investment and Development Corporation (KSIIDC) in 1995 but pulled out of the project recently expressing unhappiness over alleged delay in clearance. The MoU expired on September 30 last year. Today’s pact was initialled by KSIIDC chairman and managing director BK Das, and the AAI chairman DV Gupta in the presence of Ananthkumar and Karnataka chief minister JH Patel

Ananthkumar said, a key infrastructure development cell would be set up in the civil aviation ministry to monitor the implementation of the project. The steering committee, comprising two representatives each from the Karnataka government, KSIIDC, civil aviation ministry and AAI, would vet the global tenders, he said.

He said all outstanding issues concerning the international airport had been solved. The defence ministry-owned HAL airport would be used for operation of 50-seater and below aircraft, VVIP movements, defence purposes and for world class manufacturing facility.

The Bangalore International Airport marked a major leap in the government’s decision to corporatise five airports in the country and it would be under an autonomous corporation, the first in the civil aviation ministry. Being under an autonomous corporation, the new airport would be self-propelled, self-developing and self-reliant. The new airport which would provide global connectivity to Bangalore, considered the Silicon Valley of Asia, would be futuristic with facilities like infotech centre, conferencing and an amusement park, he said.

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Patel said an international airport for Bangalore, which has been acknowledged as one of the `top 10 technopolises’ in the world, was a long-felt need. He hoped that the concerned authorities would stick to the specified time-schedule to implement the project.

Patel said the Karnataka government had done whatever is possible to make the international airport a reality and complimented Ananth Kumar for his relentless pursuit of the project.

After the Tatas announced their withdrawal, the Karnataka government had made efforts to persuade them to reconsider but in vain. Subsequently, the Karnataka government and the civil aviation ministry resolved various outstanding issues recently, to pave the way for early implementation of the project.

The issues concerning approach to fixing of aeronautical charges, future role of HAL airport and landing rights for international airlines had been resolved, officials said. Ananth Kumar also said the all weather airport at Hubli would be commissioned on May 8, 1999.

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Karnataka large and medium industries minister BL Shankar, civil aviation ministry secretary PV Jayakrishnan and the Karnataka government chief secretary BK Bhattacharya, were present at the signing ceremony.

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