The State government is likely to entrust the task of completing the much-delayed Kalaburagi airport project to the Public Works Department (PWD) after the Airports Authority of India (AAI) refused to take up the incomplete project work.
The PWD recently conducted an assessment of the project site, the work on which has remained suspended for over three years now, and submitted a report to the State Infrastructure Development Department (IDD).
“We are planning to entrust the project work to the PWD. The AAI has promised to give the necessary technical assistance to the PWD,” Minister for Infrastructure Development, Roshan Baig, said.
The government had sought the AAI’s help in completing the project work after it terminated the contract with the then project promoter, Gulbarga Airport Development Limited, a joint venture between Rahi Aviation Holdings Pvt Ltd and IL&FS Transportation Networks Ltd. The government had taken up the Rs 120-crore project on a public-private- partnership basis, and the private partner was supposed to build, operate and run the airport on a 30-year lease.
The project work was hit due a dispute between the two shareholders on financial matters. The contract was terminated in January this year for not complying with the Project Development Agreement (PDA). The airport construction work should have been completed by May 2012 as per the PDA.
Sources in the IDD said the AAI recently informed the government that it was unable to make proper assessment of the current status of the project. Hence it would not be able to take up the task of completing the project. Currently, about 45 per cent of the runway and about 85 per cent of the terminal work have been completed.
Only technical assistance
The sources said the AAI has offered to provide only technical assistance for completing the project. The AAI has been of the view that the existing terminal building and even the runway would have suffered much damage in the last three years. So, it involves a lot of risk to take the responsibility of completing the airport project, the sources added.
Shivamogga airport
The government is planning to re-tender the Shivamogga greenfield airport project, which also met the same fate as the Kalaburagi project. Both the projects were awarded to the same promoter, and the Shivamogga project contract, too, has been terminated.
As no construction work had begun at the Shivamogga airport, the government wants to find another private partner to take up the project, the sources said.