State pumps money into BIA

State pumps money into BIA
BY R. JAYAPRAKASH
BENGALURU


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I BIAL gets Rs 12.5 crore for new canopy as JHC slams airport operator I The order authorises the KSIIDC to withdraw the money to be handed over to BIAL as a soft loan

The state govern-ment is pumping in crores of rupees into Bengaluru International Airport (BIA) despite the Joint House Committee (JHC), set up to probe lapses at the airport, criticising the BIA operator on various counts.
The government has quietly released Rs 12.5 crore to Bangalore International Airport Ltd to build a canopy at the passenger terminal building even as JHC members are seething over the consortium for not cooperating with its probe.

A government order dated January 16, 2009, a copy of which is with this newspaper, states that government has agreed to release Rs 12.5 crore against BIAL’s request of Rs 28 crore. The order authorises the Karnataka State Industrial Investment Development Corporation (KSIIDC) to withdraw the money to be handed over to BIAL as a soft loan out of a contingency amount under the State Support Agreement (SSA).

A member of the JHC told Deccan Chronicle that he was unaware of the fund release and that it was case of double standards by the government to release crores of rupees when the committee was investigating serious lapses by BIAL.

“We have unearthed so many discrepancies that it will take a lot of time to table them. From spending on construction, to contracting to procurement, BIAL has always favoured certain companies. To make the matters worse, at the end we have a substandard airport.

Ultimately all this is public money and we will make them accountable to each and every paise spent by them,” the JHC member said.

“We were reluctant to let former BIAL CEO Albert Brunner off the hook, but board members assured us full cooperation and said they would be responsible should any lapses be found.

The release of additional funds shows that there are vested interests in the government too,” he added.

The member also said that the announcement of the Lok Sabha elections has hindered the probe. “We are required to be actively involved in the forthcoming elections. In the meantime, we have asked for some investment proofs and receipts. We will take up the matter after the elections are over and table our findings in the House. Also we will write to the government, asking it not to release any more money till the investigations are completed,” he said.

A senior official in the government said that the request for release of funds was made by BIAL back in May 2008. “The money was released only last month.

The government cannot reject the proposal outright as the money was sought under SSA. Also the money was released only after ascertaining the validity from iDeCK (Infrastructure Development Corporation Karnataka Limited),” he said.