Panel moots separate bids

Panel moots separate bids
The Times of India

Bangalore: Stung by criticism from the Centre on two fronts — the “limited’’ capacity of the under construction Bangalore International Airport and the awarding of contracts to their own members — the airport company is aiming to redress both in the redesign project.

As details of physical design for the expansion of the Rs 1,411 crore airport are being worked out, the airport company — Bangalore International Airport Limited — has been given another directive by Union civil aviation minister Praful Patel: Tackle the “favouritism’’ complaint raised by the Parliamentary committee headed by CPM MP Nilotpal Basu.

“The brief now is to separate additional parts of the expansion project from the main and bid it out again competitively, instead of just adding it on to the main project,’’ infrastructure secretary Vinay Kumar told The Times of India. This retendering will ensure that the airport’s present builders-cum-partners, Larsen & Toubro, will have to bid competitively for the additional building package.

Basu and the panel had taken objection to L&T building the whole project, despite being a partner in the consortium. In contrast, the building contract for the competitive Shamshabad airport outside Hyderabad has been spread to various people.

Kumar said the BIAL was working on which bits could be bid out again without compromising the design or the construction schedule of the airport. “It has to be clear, as we do not want to compromise the main project. We do not want an elephant head and horse legs,’’ he pointed out. The details are expected to be worked out and dovetailed with the ongoing construction within February, after which the BIAL board will clear it. Funding for the additional bits, however, has already been sorted out.

Kumar said: “There will be no increase in state support or equity. The additional bits may cost around Rs 400 crore, but ICICI has agreed to finance it. The entire additional amount will be debt.’’