A Joint House Committee of the Karnataka Legislature has recommended blacklisting of L&T, Siemens and Unique Zurich Airport for a minimum of five years, citing “poor quality of workmanship” in the construction of Bengaluru International Airport (BIA).
It has asked for “appropriate action” against those involved in important decisions, including Infosys Chief Mentor N.R. Narayana Murthy and Rajeev Chandrashekar, MP.
The committee has found serious lapses in the drafting of the Concession Agreement to construct the green field Bengaluru International Airport through public-private partnership. It heavily favoured the private participants, the panel said.
BJP MLA D. Hemachandra Sagar, who headed the 21-member joint legislature committee, tabled the report on ‘Examination of Construction of BIA’ in the Assembly on Monday.
The 124-page report said: “Considering the poor quality of workmanship executed, the trading of shares for profit without showing an iota of concern for the public, the arrangement of entrustment of all airport works among the private players in the BIAL and total apathy towards the needs of users, the partners in the project — L&T, Siemens and Zurich — should not be considered for entrustment of any work by both the governments or their agencies for a minimum period of five years.”
The panel was constituted in September last year after several members alleged that the Bangalore International Airport Ltd., which started functioning in May 2008, did not meet the international standards. The panel said the Unique (Flughafen Zurich AG) Zurich Airport, Switzerland, made a profit by off-loading 12 per cent (Rs. 46.15 crore) of its 17 per cent (Rs. 65.38 crore) stake at a whopping value of Rs. 484.60 crore. “The private promoter walked away with an over 1050 per cent return in just four years. This indicated that the private players have set their eyes on huge multiplication of their investment and have cut many corners for the sake of short-term profit.”
