Decks cleared for launch of airport project

Decks cleared for launch of airport project

The Hindu

BANGALORE, APRIL 6. Another milestone in the long-awaited Bangalore International Airport project will be crossed on Friday when the State Government signs an agreement with Zurich Airport, part of the consortium investing in the project.

According to the Industries Minister, P.G.R. Sindhia, this will be the last of the agreements to be signed, and "with the financial closure already completed, the actual work at the site can start now.''

Rail link

The airport is to be located at Devanahalli, 35 km from the city centre. A six-lane highway is being built to it and the Railways is to provide a link to the Cantonment station.

he airport, which is expected to make Bangalore an aviation hub with national and international connectivity, will be the country's first private-public collaboration in the sector.

If work does start now, it is likely to be completed by mid-2008.

With several hurdles overcome, Bangalore International Airport Ltd. (BIAL) can now get down to work. The Rs. 1,300-crore estimate of last

year may need to be revised now. The private consortium of Siemens, Zurich Airport and Larsen and Toubro together hold a 74 per cent share in BIAL and the State Government and the Airports Authority of India hold 13 per cent each.

When it is ready, the international airport is expected to cater to 40 lakh passengers a year, including 10 lakh international travellers. It may handle 1,30,000 tonnes of cargo annually. ICICI Bank is the lead arranger for the project.

The concession agreement, demanded by BIAL stipulates that no commercial aircraft will use the existing HAL airport once the Devanahalli airport is ready. Only small aircraft with less than 15 seats will be allowed to use the old airport.

One of the last technical snags in the airport project was cleared last year when the Defence Ministry decided to relocate the Indian Air Force (IAF) base in Kolar to a site provided by the State Government.

The airspace of the IAF base would have clashed with that of the international airport.

Other projects

Mr. Sindhia said 200 hectares of land has been acquired at Madakalli village near Mysore for a Rs. 100-crore airport, which may be completed by early 2007.

The Union Government has released Rs. 100 crores for remodelling Mangalore airport and sanctioned night landing facility for Hubli airport, he said.

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