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Journalism of Courage
The change of guard in Karnataka has not augured well for the Bangalore International Airport Ltd (BIAL) with the Dharam Singh government taking its own time to approve crucial agreements cleared by its predeccessor early this year.
Just before polls, the S.M. Krishna cabinet had approved the land lease agreement and the state support agreement for Rs 350 crore in February. It appeared then that the Centre was dragging its feet on finalising the concession pact.
Now, the roles seem to have reversed now. The concession agreement was cleared and even signed three months ago in New Delhi, but further delay has crept in because the Dharam Singh government wants to re-examine the previous government’s approval.
Deputy CM Siddaramaiah, who also holds the Finance portfolio, is now on an election tour of Bidar. And until he finds time, sources say, the proposal will remain where it is. Despite claims by the Karnataka Minister P.G.R. Sindhia three weeks ago that the pending agreements will be cleared in 20-25 days, the approvals are expected to take longer. By the looks of it, sources said, the process is unlikely to meet the mid-November deadline for financial closure.
A reason being cited by the new government for a relook is that BIAL reported an escalation in project cost in March. Again due to delays, the estimated project cost is now around Rs 1,330 crore but sources said this escalation is not linked to state support which is still Rs 350 crore. Though most obstacles are out of the way, the new government’s approach has baffled many. Any more delay could prompt a demand for increase in the state support package.
‘‘There is nothing wrong to examine the previous government’s decisions,’’ said Vinay Kumar, Principal Secretary in the Karnataka Industries and Infrastructure Ministry.
