Economy

Karnataka Cabinet ready to execute lease-cum-sale land deal with JSW Steel

Our Bureau Bengaluru | Updated on May 27, 2019 Published on May 27, 2019

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Cancels airport agreement with Jupiter Aviation

The Karnataka government has agreed to execute the lease-cum-sale agreement on 3,666 acres with JSW Steel for setting-up Vijayanagar Steel Plant at Toranagallu village in Ballari district.

The Cabinet has also decided to cancel the agreement it had signed with Jupiter Aviation Services for the construction of Hassan airport over non-fulfilment of conditions.

Briefing reporters after a Cabinet meet chaired by Chief Minister HD Kumaraswamy, Rural Development and Panchayat Raj Department Minister Krishna Byre Gowda said, “JSW Steel was allotted 3,666 acres of land in two instalments (2,000 acres and 1,666 acres) in 2006 and 2007.”

As per the lease-cum-sale agreement and subsequent review, the government has decided to transfer the land to the company. Looking at the land use and employment created by the company, the Cabinet on Monday decided to execute the lease-cum-sale of land in favour of JSW Steel.

“The company had purchased land — 2,000 acres at the rate of ₹1.22 lakh per acre and the balance 1,666 acres at ₹1.5 lakh per acre. In all, the company had paid ₹18 crore. Now the company has to pay the latest guidance rate,” said Krishna Byre Gowda. “The State Finance Department will calculate the difference and the company has to pay it,” he added.

Hassan airport

The State Cabinet has decided to cancel the agreement with Jupiter Aviation Services for the construction of Hassan airport, said Krishna Byre Gowda.

The airport project was the brainchild of former Prime Minister HD Deve Gowda. The foundation stone was laid 15 years ago near Bhuvanahalli on the outskirts of Hassan city.

As per the plan, Jupiter Aviation Services had to build the airport and establish business links in Hassan, Chikmagaluru, Mysuru and Tumkuru. And to promote tourism locations in Hassan – Shravanabelagola, Belur and Halebidu. But, the project remained a non-starter.

Now, the Karnataka government is planning to give a new lease and build a low-frill airport by partnering with Airport Authority of India, which will have 51 per cent stake and the rest will be held by the State government.

“Today, the Cabinet decided to give impetus to the airport project. The State government is now planning to rope in RITES for preparing the detailed project report,” Gowda said.

Published on May 27, 2019

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