The Hindu : Karnataka / Bangalore News : Hyderabad firm roped in for Gulbarga, Shimoga airports

Online edition of India's National Newspaper
Wednesday, Nov 14, 2007
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Karnataka

Karnataka - Bangalore

Hyderabad firm roped in for Gulbarga, Shimoga airports

Special Correspondent

Lease term to be extended by another 30 years after the first term
Company to pay 10 per cent escalation cost every three years

BANGALORE: The State Cabinet on Tuesday has decided to enter into an agreement with Maytas Infra Ltd., a Hyderabad-based private infrastructure development and construction firm, to build and develop airports in Gulbarga and Shimoga on the private public partnership (PPP) model.

Briefing presspersons after the Cabinet meeting here, Minister V.S. Acharya said the airport in Gulbarga would be developed on 567 acres of land while the airport in Shimoga would come up on 662 acres of land. Both the projects were expected to fuel the economic growth of Malnad and Hyderabad-Karnataka regions.

The Government would enter into an agreement with the private company for a 30-year lease. The company had to pay royalty of Rs. 15,111 an acre to the Government a year in the case of airport in Gulbarga. With regard to airport in Shimoga, it has to pay annually Rs. 20,232 an acre to the Government. The company had to pay 10 per cent escalation amount every three years after completion of work on airports.

The Government, now, would enter into the agreement for 30-year lease. After the completion of the first 30-year period, the lease term would be extended for 30 years, Mr. Acharya said.

The land acquisition process for projects had been completed. The Government would sign the agreement with the developer soon, he said. Airports Authority of India (AAI) had accorded technical approval for the development of airports in Shimoga and Gulbarga.

Bijapur airport

The State Cabinet also decided to develop an airport at Bijapur on 550 acres on the PPP model. However, it was decided to acquire 100 acres of more land to the project. Tenders would be called soon to construct the airport, Dr. Acharya said.

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