Search the Internet          Tips  Sites: Finance, Investment

India to launch Bangalore airport project this week

Indian Prime Minister Atal Bihari Vajpayee will kick off construction of a long-delayed mega-international airport project in Bangalore on Friday, a government official said.

"We have not yet finalised the private sector partner but that won't come in the way of launching preliminary construction," the official said on Wednesday.

Karnataka has shortlisted German construction group Hochtief AG and Swiss airport operator Unique Zurich Airport for a 74 per cent stake in the Rs 12-billion project.

The companies also have the responsibility for raising the full debt.

Karnataka state and the federal Airports Authority of India (AAI) will each hold a 13 per cent stake in the project first mooted in 1994.

The Hochtief consortium includes Dusseldorf Airport, while the Unique Zurich Airport bid is backed by German electronics and engineering group Siemens and Indian engineering and construction firm Larsen & Toubro.

An AAI official had said earlier this month that the two consortia would submit a detailed business plan by May.

The Bangalore airport is India's second greenfield airport to be built with investment from private firms. The first was in Cochin.

Bangalore, India's technology hub, is home to hundreds of software firms that are hit by the lack of a modern international airport because the existing one cannot handle large aircraft and passengers have to fly out of Madras or Bombay.

In 1998, a consortium led by India's Tata group, backed out of the Bangalore airport project, citing delays in government approval. The consortium included Raytheon Co of the United States and Changi Airports Authority of Singapore.

In June 1999, Karnataka invited fresh bids for the 74 per cent private partner to build the airport.

Tell us what you think of this report