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This is an archive article published on September 30, 1998

Tatas, Karnataka govt to review airport project

MUMBAI, SEPT 29: In a face-saving gesture for the J H Patel government, the Tatas and the Karnataka government have announced today that ...

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MUMBAI, SEPT 29: In a face-saving gesture for the J H Patel government, the Tatas and the Karnataka government have announced today that they would jointly carry out a study to examine ways and means to restore the viability of the Rs 1,500 crore Bangalore international airport project.

“It was acknowledged by both Tatas and the Karnataka government that there are some vital issues affecting viability of the project which need to be addressed during the joint study,” the statement said. Following talks with the Karnataka government officials, who flew down on Monday to discuss ways to revive the project, the Tatas have now agreed to participate in the joint study, which would be completed in the next two months, a joint statement by the government and Tatas said today.

The proposed airport project and all associated matters were discussed with the officials who came armed with a revised offer and a draft memorandum of understanding as the present MoU expires tomorrow.

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The statement said that the Tatasbrought to the notice of the state government delays in laying down the basic parameters of the project and communicating approvals by the Union government had eroded the project’s viability and led to the consortium partners to reconsider their interest in the project.

The Patel government was under fire for constantly losing big investment projects to neighbouring state of Andhra Pradesh. Though the airport project by the Tatas was announced two years back, both the state government and Civil Aviation ministry sat over the project. It was only when the Tatas announced their exit from the airport project that the Patel government woke up and sent a team, led by top bureaucrats to pacify the Tatas.

Tatas had walked out of the project along with their consortium partners Raytheon of US and Changi airport of Singapore following inordinate delays in clearing the airport project at Deveanhalli, near Bangalore. Even the airline project of the Tatas was spiked by the company after the civil aviation ministry,led by Ananth Kumar deliberately delayed its no-objection letter to the Foreign Investment Promotion Board (FIPB).

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