Now, it’s plane sailing for airport

Now, it’s plane sailing for airport
State Govt Removes Last Hurdles; Work To Begin In Feb.
The Times of India


Bangalore: Karnataka on Tuesday removed the last hurdles in the way of Bangalore International Airport by okaying pending approvals. Work is expected to begin in February.

After the first formal cabinet meeting post-ministry expansion, chief minister N. Dharam Singh told reporters: “We’ve given approvals after discussing all aspects and detailed presentation by the officials. With this, a long-pending dream of the state is about to come true.’’

Detailing approvals, infrastructure minister P.G.R. Sindhia said:

Maximum state support amount for the Rs 1,334-crore project will be Rs 350 crore, as an interest-free loan repayable after 10 years from completion of the project.
Rs 30 crore sales tax exemption will not be given.
On land lease, BIAL agreed to 4,050 acres land instead of 4,450 acres with KSIIDC retaining the 400 acres.

Sindhia said the changes had ensured a saving of Rs 100 crore for the government. The savings:
Reduction of interest rate from 12 per cent to 7 or 8 per cent.
Cut in expenditure on trial run.
Positive foreign exchange rates.

Of Rs 350 crore, the base state support will be Rs 275 crore, while the remaining Rs 75 crore contingency loan amount can also be used,’’ Sindhia said. With these approvals, it is now up to BIAL and its partners to arrive at financial closure. “We’ve told KSIIDC to start drawing up the land lease agreement and begin transfer of land while the finance department has been directed to go ahead with the loan amount.’’

Later, the CM apprised PM Manmohan Singh of the clearance. “The PM was very happy,” he said.