The Hindu : Karnataka / Bangalore News : Pact signed for Gulbarga, Shimoga airports

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Thursday, Apr 03, 2008
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Karnataka

Karnataka - Bangalore

Pact signed for Gulbarga, Shimoga airports

Special Correspondent

Airports in backward regions will lead to development of interior areas: Tharakan

— Photo: V. Sreenivasa Murthy

Agreement: Deputy Secretary (Infrastructure Development) Renuka Prasad (right) shaking hands with vice-chairman of Maytas Infra Limited Teja Raju after signing the MoU in Bangalore on Wednesday. Chief Secretary Sudhakar Rao (second from left) and P.K.H. Tharakan and Krishna Kumar (second from right), advisers to the Governor, are with them.

Bangalore: The State Government and a consortium of companies, represented by Maytas Infra Limited, on Wednesday signed a project development agreement to construct greenfield airports in Gulbarga and Shimoga on BOT terms.

Deputy Secretary (Infrastructure Development) Renuka Prasad and vice-chairman of Maytas Infra Teja Raju signed the documents in the presence of the Governor’s advisers S. Krishna Kumar, P.K.H. Tharakan and P.P. Prabhu, and Chief Secretary Sudhakar Rao.

Mr. Rao said Karnataka was a pioneer in taking up infrastructure development in Tier II and Tier III cities on private-public partnership. There was growing demand for airports in these two cities, and already an airline had expressed interest to commence operations to Gulbarga from Bangalore via Bellary.

Mr. Tharakan said that airports in these backward regions would lead to development of interior areas of the State.

Mr. Krishna Kumar pointed out that Karnataka made history in 2002 when it succeeded in convincing the Union Government to amend the relevant laws for allowing it to sign a concession agreement.

Two separate special purpose companies will be set up for the project and the partners of the consortium, Maytas Infra and Nagarjuna Construction Company, will hold shares of 37 per cent each and VIE India Project Development and Holding LLC, 26 per cent.

Albert Brunner, Chief Executive Officer, Bangalore International Airport Limited, and V.P. Baligar, Principal Secretary (Infrastructure Development), were present.

Mr. Baligar said that the cost of construction of each airport would be Rs.50 crore. It could go up to Rs.100 crore, depending on the interest of the consortium partners to have state-of-the-art construction and equipment. While Gulbarga airport would generate income of Rs.1 crore, it would be Rs.1.3 crore in the case of Shimoga airport.

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