Aviation majors convince EADS to relook at city

Aviation majors convince EADS to relook at city
The Times of India

Bangalore: Where the Karnataka government has failed, two aviation majors might succeed. The European Aeronautic Defence and Space Company (EADS) has said it will give top priority to setting up its technology centre and campus in Bangalore after a fervent plea by Kingfisher Airlines chairman Vijay Mallya and Air Deccan MD GR Gopinath.
Though Bangalore had been shortlisted, EADS was finding it difficult to set up the facility here because the state government was unresponsive to requests for concessions sought by the European major.
However, EADS CEO Tom Enders told an audience late on Friday night that the company will do everything to set up the facility in Bangalore. A final decision will be taken in the next couple of weeks.
Enders agreed with Mallya and Gopinath that India holds a bright future for the aviation major. “At EADS, we realise the huge possibilities in your country,’’ he informed them.
Enders later told the
Sunday Times of India
that among the EADS considerations are infrastructure costs, skill sets available and availability of international specialists in the city.
“Bangalore does fit the bill, and that is why we have shortlisted the city. We are looking at four sites,’’ Enders said. Apart from Bangalore, EADs is looking at another southern city, which has promised to meet all EADS requirements. He refused to name the other city.
Mallya and Gopinath promised Enders they would help EADS in sorting out issues with the state government. Gopinath said he would speak to chief minister Kumaraswamy and request his help in setting up the EADS facility in Bangalore.
Gopinath appealed to EADS to look at India, specially Bangalore, which has a huge expertise in aeronautics. With a potential to fly more than 50,000 flights annually, India would be the right destination for EADS, he said.
EADS considerations are infrastructure costs, availability of skill sets and international specialists in Bangalore.
Mallya and Gopinath have promised EADS CEO they would help EADS in sorting out issues with the state government.
Gopinath plans to speak to chief minister H D Kumaraswamy and request his help in setting up the EADS facility in Bangalore. Govt keen, but finds EADS terms ‘tough’ By Prashanth G N/TNN
Bangalore: The European Aeronautics Defence and Space company (EADS) hopes that the Karnataka government will facilitate its plans to set up the technology centre and campus facility in Bangalore keeping in mind the European major’s requirement in land finalisation for the project. In a letter to Karnataka principal secretary (commerce and industries) dated Aug. 23, EADS has laid down the following three conditions:
n Maximum six months for land seeing, measuring, and allotment to the EADS group, allowing it to start development of the land by Feb. 2007
n Land rate: Rs 60 lakh per acre or lower
n The land allotted to EADS (6 to 10 hectares) should be located between NH7 and the future expressway to the Devanahalli airport.
The letter said: “This would help EADS to finalise the selection of Bangalore for our centre during the planned visit of EADS CEO next week. We expect a written answer from you before August 26, Friday.’’
Government officials described as “hard’’ and “difficult’’ the conditions put forward by EADS to set up a technology centre campus here and hinted that the acquisition-and-allotment process is too complex in India to be done overnight. An official told the Sunday Times of India that the government had only three days ago approved a proposal on preliminary notification for land acquisition. He said: “We’ve initiated the land acquisition process’’.
Reacting to this letter, the senior government official put forward a series of problems the government has with these conditions. “It will take us eight months to complete land acquisition. It will then take time to develop the land, construct roads, provide electricity and water. We have to call a tender which will take about two months. How is it possible to develop land before Jan. 2007 then?’’
The official further said EADS has not yet put in an application with the Udyog Mitra or KIADB and nor has the KIADB acquired land near the international airport other than for the airport itself. “So where can we give the land from? But Karnataka State Industrial Investment Development Corporation may have some land near the airport. It is for the Major and Medium Scale Industries minister to persuade KSIIDC to part with the land to EADS’’.