The Karnataka government has stated categorically that the controversial Tata-Raytheon international airport project at Devenahalli near Bangalore will become a `reality by next month.
State industry minister R V Deshpande said here yesterday that the project would go through despite the reported statement by Chief Minister J H Patel that new tenders would be called.
Theres no need for new tenders. The project would become a reality next month, Deshpande said. However, he would not say whether the project would be undertaken either on `BOO (build, operate and own) or `BOT (build, operate, and transfer) basis.This has been the raging issue in the battle between the Tatas and the civil aviation ministry for some time now with the government insisting on BOO and the Tatas refusing to dilute the BOT terms under which their proposal had been cleared earlier.
Deshpande said the state government had already clarified its position to the Union government on the project.Whether its on BOO or BOT, the project is taking off next month, he asserted. The Devenahalli airport project was proposed to be promoted with equity holding by Tata, Raythian and KSIIDC. Preferring not to blame the Centre for the delay in the project, Deshpande agreed that the delay has sent wrong signals to the foreign investors. As this is the first such mega project in the private sector, such delay is unavoidable, he said. Regarding recent reports that the Centre had cancelled the excess liquid fuel quota for Karnataka power projects, he clarified that the fuel quota for generating up to 600 mw from the barge-mounted projects and also from other projects aggregating to 1160 MW remained valid.
The Centre has clarified that only on the extra demand over and above sanctioned quota would not be possible, he said.
As part of the states efforts to invite foreign investment, the Chief Minister is all set to visit the US and the UK on a business tour, taking with him a huge delegation of 40 businessmen and a few of his cabinet colleagues, he said.
