Energy Minister D.K. Shivakumar has urged Chief Minister Siddaramaiah to restrain the GVK Group from selling its 10 per cent share in the Kempe Gowda International Airport, Bengaluru, to Fairfax Group, a Canadian firm.
Earlier, the GVK Group sold its 33 per cent of its share to Fairfax Group, which had also acquired five per cent from Zurich Airport.
The KIA was developed by the State government with the investment from Siemens and Zurich Airport and became operational in 2008. The GVK Group had 43 per cent of the share in the KIAL.
“If the GVK Group sells its remaining 10 per cent of the share (33 per cent plus 10 per cent), the combined share of the foreign shareholders - Siemens (26 per cent) and Fairfax Group (5 per cent plus, 33 per cent plus 10 per cent) would be 74 per cent. “This is not advisable in the interest of providing high standard services to passengers, and the safety and security of the country will also become a matter of concern”, Mr Shivakumar siad.
The Fairfax Group is only a financial investor and has never operated or maintained any international airport. If the GVK Group exists by selling its stake to a foreign company as proposed, then the KIAL will be left with no one among the shareholders who have such an experience and expertise as required by the Shareholders Agreement, the letter said.
“Private promoters have made the company a trading entity, instead of serving the interest of the passengers with services of international standards which was the basic intention behind allowing promoters to become shareholders in the company.”
In the letter to the Chief Minister, Mr. Shivakumar said “I request you (CM) to initiate action to continue GVK group as a shareholder and immediately put on hold their proposal to sell the remaining 10 per cent of share to Fairfax group.”
