For Prime Minister Deve Gowda, it will be a sticky problem as the Navy's demands have to be balanced against the political reality of his home state.
The state had recently turned down the Navy's request to transfer forest land in Uttara Kannada district on grounds that cutting down trees would harm the fragile ecology of the Western Ghats. An alternate site offer has been rejected by the Navy.
The Navy has acquired 2,215 hectares over the past 10 years for the project, whose foundation stone was laid by former Prime Minister Rajiv Gandhi. Work on the project has accelerated this year following a specific budgetary allocation for Sea Bird.
The project is expected to cost Rs 5,300 crore in the first phase and will be completed by 2005 AD. It will be the most well-equipped base on the Indian coast and among the most modern and expansive in the world. It is supposed to take over from Mumbai and Cochin as the main sea base of the country and have special facilities for repair of large battleships, aircraft carriers and submarines.
Karnataka's refusal to part with the land has come as a jolt to the Navy as it has already acquired the largest portion of the land.
The state's opposition mainly stems from the opposition by locals against the project, who fear their traditional occupation, fishing, would be in jeopardy once the base is established.