The Hindu : Bangalore International Airport taking shape

Online edition of India's National Newspaper
Saturday, Apr 12, 2003

Southern States

Southern States - Karnataka

Bangalore International Airport taking shape

By Our Special Correspondent

Bangalore April 11. The amendment to the law to exempt airports in the private sector (from the application of the Airports Authority of India Act) is likely to be cleared by Parliament this month removing the legal obstacle in the implementation of the Rs.1200-crore Bangalore International Airport.

The concession agreement assuring that no other airport will be allowed to come up within 150 km of this airport and there will be no discriminatory treatment in matters such as levy of night landing and parking charges will be given a final shape by May.

The state of the airport project was explained here on Friday by the Minister of State for Infrastructure Development and Civil Aviation, T. John, who discussed the issue with the Union Minister of State for Civil Aviation, Shripad Yesso Naik, in Delhi recently.

Addressing a press conference with S. Krishna Kumar, Principal Secretary, Infrastructure Development, Mr. John said the draft Bill to amend the Airports Authority of India Act was being discussed by the Union Ministry of Civil Aviation and the Union Ministry of Law.

As far as the concession agreement was concerned, the Union Secretary for Civil Aviation would convene a meeting shortly to review it. At present, the Union Ministry was awaiting comments of the Ministry of Finance and the Ministry of Law. The Prime Minister's Office was monitoring it and it wanted the matter to be finalised before the end of this month.

The Government was working towards financial closure by June or July, a month after which work on the project could be taken up. The project was in an advanced stage of preparation on the engineering and technical side. Various project agreements were in advanced stages of discussion with legal advisors. These were likely to be finalised by May.

ICICI Bank, which had been selected as financial arranger for the project, was likely to start work shortly. It would act as a syndicate for borrowing Rs.500 crores by the airport project authorities from various banks and financial institutions.

According to Mr. John, once the project is implemented (by 2006), the existing HAL Airport will be limited for the use of VVIPs only. The starting level is about 3.5 to four million passengers, which may go up to 10 million.

Regional air services

Mr. John and Mr. Kumar said that the reduction in the rate of sales tax on avgas and aviation turbine fuel from 28 per cent to four per cent, announced in the State Budget, would serve as a major incentive to promote regional air services in the State, and also help revive flying clubs. The reduction in sale tax would make the operation of smaller aircraft on regional routes more viable and provide affordable air connectivity to destinations such as Mysore, Hubli, and Belgaum promoting tourism and industrial development. Deccan Airways had ordered four 50-seater aircraft. Jet Airways had also evinced interest, they added.

A technical team of AAI and the Directorate General of Civil Aviation recently visited the State and cleared the feasibility of operation of small aircraft up to 50 seats from Mysore and Hassan. Their report was awaited. The team had visited a new site at Papinayakanahalli near Hampi and asked for additional information and maps.

The Government had furnished information about land available in Bijapur and requested the AAI to clear the site.

It had cleared a new site near Srinivasa Saradgi on Sedam Road in Gulbarga. Acquisition proceedings had been initiated.

They said that in Mangalore handing over of land acquired for the expansion of the existing runway had started. The process would be completed by the end of next month, and AAI had been requested to take up construction of the boundary wall and formally approve the project to upgrade the runaway.

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