Hyderabad firm roped in for Gulbarga, Shimoga airports

Bangalore: The State Cabinet on Tuesday has decided to enter into an agreement with Maytas Infra Ltd., a Hyderabad-based private infrastructure development and construction firm, to build and develop airports in Gulbarga and Shimoga on the private public partnership (PPP) model.
Briefing presspersons after the Cabinet meeting here, Minister V.S. Acharya said the airport in Gulbarga would be developed on 567 acres of land while the airport in Shimoga would come up on 662 acres of land. Both the projects were expected to fuel the economic growth of Malnad and Hyderabad-Karnataka regions.
The Government would enter into an agreement with the private company for a 30-year lease. The company had to pay royalty of Rs. 15,111 an acre to the Government a year in the case of airport in Gulbarga. With regard to airport in Shimoga, it has to pay annually Rs. 20,232 an acre to the Government. The company had to pay 10 per cent escalation amount every three years after completion of work on airports.
The Government, now, would enter into the agreement for 30-year lease. After the completion of the first 30-year period, the lease term would be extended for 30 years, Mr. Acharya said.
14/11/07 The Hindu

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Categories: Airports Nov 2007, New Nov 2007