Government to allot land to EADS near BIAL

Giving in to the mounting pressure from the airline majors and in a bid to project itself as an investor-friendly state, Karnataka finally agreed in-principle to allot land to European aviation and space major EADS near the upcoming Bangalore International Airport for its technology centre.

In a press statement on Monday, Karnataka commerce and industries department technical cell director M C Veerabhadraiah said the government would facilitate EADS' proposal to set up the technology centre near the airport.

EADS has sought 6-10 acres of land near the airport where it proposes to start a campus-style institution to bring both the EADS subsidiaries and the Indian partners under one roof, performing engineering and information technology services.

The investment expected to be made is around Rs 11,000 crore over a period of 15 years.

"EADS has been advised to make a formal application to Karnataka Udyog Mitra, the nodal agency for industrial investments. The application will be forwarded to the State High Level Clearance Committee (SHLCC) on investments for final clearance," Veerabhadraiah added.

When contacted, CEO of EADS Tom Enders told Business Standard: "We welcome any initiative regarding this. I can say that Bangalore has moved up on our shortlist." But, this is not yet a decision, he added.

The government's approval came after EADS expressed concern over the delay in the state's response to its proposal. It is said that major airliners like Kingfisher and Deccan Aviation prevailed upon the government to take a quick decision on the EADS' proposal.

Karnataka's industries minister Katta Subrahmanya Naidu said EADS had been asked to submit a comprehensive plan detailing the investments proposed.

"We have 410 acres of land in our possession near BIAL for aviation related projects. We are ready to allot 25 acres to EADS in the same area off the national highway," he added.

Last week, EADS said it planned to inaugurate the centre in early 2008. Central to the EADS campus will be an engineering unit called the Engineering Centre Airbus India.

It will be a 100-per cent owned subsidiary of Airbus and will represent the biggest on-site unit owned by an EADS division. The Airbus Engineering Centre will focus on high-end engineering analysis and design and will eventually work closely with several Indian aeronautic suppliers.