Tata Industrie-led consortium has said that no re-feasibility study was being conducted by the consortium for setting up the Rs 2,700 crore Bangalore International Airport project thereby putting an end to speculation that the consortium was reconsidering its decision to pull out of the project.
The consortium also denied Union Civil Aviation Minister Ananth Kumar's statement that Tata Group Chairman Ratan Tata had told him that a re-feasibility study was being conducted by the consortium partners.
"Mr Tata had only conveyed to Mr Ananth Kumar his deep anguish at the project not making any progress at all for several years now," Tata Industrie sources told Business Standard. The consortium consisting of Tata Industrie, Changi Airport Authority Raytheon Inc pulled out of the Rs 2,700 crore project in July stating that inordinate delay had rendered the project unviable.
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"The ball is not in Tata's court," Tata Industrie sources said. They said unless the Union Civil Aviation Ministry makes its stand clear on the status of the HAL airport after the Bangalore International Airport comes up, no study can be conducted.
"Unless we are sure of revenue and traffic potential, how can we conduct any kind of study," sources said. They said the role of HAL airport should be clarified in "clear and irrovocable terms" before a fresh look can be made on the viability of the project.
Ananth Kumar has been repeatedly making statements that he was waiting for the re-feasibility report from the Tatas. He had also said that his ministry would clear the airport project within a week of the consortium submitting its report.
The sources said the consortium had signed a MoU on the basis of the following assurances from the Government of Karnataka: that HAL will stop commercial operations after the new airport is set up; that the site of the new airport will be at Devenahalli, near Bangalore .
and that the project would be set up on build, own and operate (BOO) basis.
As the parameters had changed since the MoU was signed as the Government had decided to allow HAL to continue commercial operations and upgrade it to international status even after the new airport was set up and that there was a review on the decision to change the pattern of operations from BOO, the consortium partners decided that the project would prove to be extremely costly for them to continue.
The sources said after the decision to let HAL continue with the commercial operations at the existing airport was taken, the consortium partners decided that another international airport would not be feasible anymore. "Where is the need to for another airport as Bangalore is too small to have two international airports," sources said.
The cost of the project in the first phase was approximately Rs 1,200 crore. The total investment over 15 years was expected to exceed Rs 2,700 crore. The project was designed to cater to Bangalore's requirement for the next 70 years.