The Hindu Business Line : Bangalore international airport project gathers pace — Krishna performs ground breaking ceremony

The Karnataka Chief Minister, Mr S.M. Krishna, performing the ground breaking ceremony for the Bangalore International Airport at Devanahalli on Thursday. The Infosys Chairman and Chief Mentor, Mr N.R. Narayana Murthy, and the Siemens Managing Director, Dr Wolfgang Bischoff, are also seen. — G.R.N. Somashekar

Bangalore , Jan. 29

PENDING one crucial but promised site clearance from the Ministry of Defence, the Bangalore international airport project inched towards its goal with the Chief Minister, Mr S.M. Krishna, performing the ground breaking ceremony of the greenfield project on Thursday.

February should see most of the outstanding pieces falling in place and construction beginning in March, according to those involved with the project.

Its cost has now been reworked to Rs 1,260 crore against the earlier estimate of Rs 1,150 crore. That accounts for the euro's rise against the rupee and the US dollar, as two of its foreign promoters will be paying their equity in euros, Mr Albert Brunner, CEO of Bangalore International Airport Ltd, said.

A few new features have also added to the cost, such as an increased terminal area totalling 55,850 sq m, according to the State Additional Chief Secretary, Infrastructure Development, Mr S. Krishna Kumar. The greenfield airport in the private sector will also have the country's first in-line baggage screening scheme and a 60-metre specially designed signature control tower, again set to be the country's tallest.

However, the State support of Rs 350 crore stays at that, he said. The Directorate-General of Civil Aviation (DGCA) team was expected to check the site in the first week of February prior to the Defence Ministry's go-ahead.

The BIA project is promoted by the German-Swiss combine of Siemens Ventures, Unique Zurich Airport and L&T as 30:17:17 majority partners, along with Airports Authority of India and the KSIIDC each with 13 per cent equity. The Infosys Chief Mentor, Mr N.R.Narayana Murthy, chairs the BIAL board.

Ten days after the Union Cabinet cleared the concession pact for the project, the Chief Minister, today broke the ground for what he called "Karnataka's dream project" at Devanahalli, 40 km from the city.

The Chief Minister said the project had to overcome several hurdles in its way before taking today's "significant step". He hoped that the Centre would not dilute the frequency of Lufthansa flights back to thrice a week when the limited open sky arrangement ends in March 27.

The airport is expected to be operational by July 2006 or 33 months from signing the financial closure. Mr Brunner said apart from the mother concession agreement with the Centre, BIAL was due to tie up a series of subordinate arrangements. These include the State support agreement for concessions; the CNS/ATM (communication navigation system / air traffic management) with the AAI; the EPC contract with L&T-Siemens; the OMC (operations & maintenance services) with Unique Zurich; and finally the financing agreement with the lead lender ICICI Bank.

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