PM steps in to stop Dharam Govt. from scuttling Intl. Airport

Bangalore’s new airport hijacked even before take-off
Centre cleared it but State Govt orders review, PM steps in after Infosys Murthy’s request
Indian Express

NEW DELHI, NOVEMBER 7: This is how India’s Silicon Valley is being grounded. It takes a person no less than the Prime Minister himself to step in to push the first greenfield airport in Bangalore—although it’s been a full four months after the Centre signed the crucial agreement clearing its construction.

That agreement itself came 11 years after the idea was first floated, shot down several times, faced the embarrassment of two ‘‘official land ceremonies’’ then got caught in a tortuous land-acquisition process that finally paved the way for the Karnataka Government’s clearance. Not to speak of the no-objection certificate from the Defence Ministry that took one year and was signed on July 5.

It was after this that the Centre signed the concession agreement and construction was due to begin any time now but it has now dawned upon the Dharam Singh government that it needs to check it all over again. Evidently, it doesn’t matter that Dharam Singh and Manmohan Singh share the same party.

Adding to this absurdity is the fact that the new state government has decided to review all approvals given by the previous S M Krishna regime (incidentally, also Congress), including the Rs 350-crore state support and the 30-year land-lease agreement.

Asked why, Karnataka Industries and Infrastructure Minister P G R Sindhia told The Indian Express: ‘‘The project will take off. It is just that our government wanted to satisfy itself on the kind of concessions being given out to the private consortium and also to familiarise ourselves with the Rs 350-crore state support. The Finance Department is examining this and I am told that it is just a matter of few days before the matter can be taken to (Karnataka) Cabinet.’’

CEO of Bangalore International Airport Ltd (BIAL) Albert Brunner is a worried man because the engineering contract with L&T and Siemens expired in September and a re-validation could mean escalation in the project cost which now stands at Rs 1,350 crore. Brunner, in fact, met Sindhia on Friday and urged him to expedite the matter. While he chases the state government, he may seek solace in the fact that last month, the PM stepped in after Infosys chief mentor N R Narayana Murthy wrote to him apprising him of the new hurdles that have cropped up.

The Civil Aviation Ministry followed this up with a presentation before the PM after which Manmohan sought a status report on the project.and asked Civil Aviation Minister Praful Patel to intervene.

Patel says he will speak to Karnataka CM Dharam Singh next week to ‘‘expedite the necessary clearances.’’

Last Thursday, a BIAL representative met Civil Aviation Ministry officials and told them that the Karnataka Government had assured them of the approval before November 15. These agreements were to be cleared by the Karnataka Cabinet last month.

Pushed and prodded by the PM, senior Ministry officials, led by Secretary Ajay Prasad, are now in touch with Karnataka Chief Secretary K K Mishra.

When contacted, Patel told The Indian Express: ‘‘I am unhappy with the delay in getting the Bangalore airport construction started. We cleared the concession agreement but the state coalition government needs to follow it up... I will speak to the Chief Minister personally next week.’’

The state government isn’t the only roadblock. Patel’s Ministry, for its part, has told the Prime Minister that other clearances from the Centre are in their ‘‘last stages.’’ The aircraft rules have been modified, the CNS-ATM (communication navigation services-air traffic management) agreement will be signed with the AAI on November 8 and a DGCA is already in Devanahalli, the airport site, to resolve issues over the height of the ATC tower.

While the state government has been dilly-dallying on the two key agreements without which the BIAL’s bankers cannot close the deal, the Defence Ministry is also acting up.

South Block has now introduced two conditions in the No-Objection Certificate for the Bangalore airport. These are: Hindustan Aeronautics Ltd., that operates the current airport, should be allocated a part of revenues from the new airport and that IAF aircaft should be given priority while flying.

But the Civil Aviation Ministry says these shouldn’t be much of a problem. It claims it has convinced the Defence Ministry that IAF aircraft, under existing rules, always get priority in case of war. On the question of revenue, it has said that there is no question of BIAL sharing revenues with HAL.

DHARAM SINGH GOVT WON'T LET IT FLY

• Project conceived in 1993
• Vajpayee performs land ceremony in Jan 2002 after tough acquisition process
• Stake holders meet in Jan 2003 after first postponement
• In Jan’04, CM Krishna performs another ceremony
• NOC from Defence Ministry follows, concession agreement cleared by NDA Cabinet
• Consortium raises clarifications, amendments made in agreement. Process delayed due to LS elections
• UPA Cabinet takes up matter, approves amendments on July 5, 2004
• Project was to take off in three weeks, waits for bankers to study documents for financial closure
• Cong-JD(S) govt led by Dharam Singh wants to review approvals given by Krishna cabinet. Project pending with Finance dept
• BIAL bankers, financers can’t move on closure until all financial agreements are signed
• Centre still to sign CNS ATM agreement linked to technical issues: alignment of second runway, height of tower, etc.
• Centre keen to sign one-time agreement to ensure no technical blocks in next phase