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Tuesday, June 23, 1998

Tatas on the verge of dropping Bangalore airport project 

Dwijottam Bhattacharjee  
MUMBAI, June 22: The Tatas have written to the chief minister of Karnataka, JH Patel, that it is very difficult for the group to continue with the long-awaited Bangalore international airport project.

In a stunning case of bureaucratic delay and political interference, even the minutes of the last meeting, held seven months ago in November 1997, between the ministry of civil aviation, the government of Karnataka and the Tata-Raytheon consortium, have not been finalised yet.

In this state of affairs, it is difficult for the Tatas to go ahead and implement the airport project, say sources, and as much has been communicated to the state government.

The official communication to the chief minister is being seen as a precursor to the top Indian private sector group's pullout after a frustrating four-year wait for the approvals required to get the airport project going.

The Tatas have also repeatedly verbally communicated to the chief minister the group's "disappointment" at not being given the requiredapprovals.

The final decision on the project does not rest with the Tatas alone, since it is in consortium with Raytheon and the government of Karnataka for the venture. The Karnataka government has not been forthcoming with the necessary approvals, and has not been able to convince the union government of the necessity for the approvals, which have been deliberated upon by four central governments over three to four years.

The union ministry of civil aviation has, in fact, of late, been proceeding with plans for the airport without any reference to the private sector members of the consortium that was supposed to set up the airport. Last week, the union government held a conference with the government of Karnataka without so much as inviting the Tatas of the meeting.

That is not all. At the end of the Bangalore meeting, the government came out with a statement announcing two meetings, one involving the defence ministry, the civil aviation ministry, the Karnataka government and the promoters, andanother involving the Karnataka government, the promoters and the civil aviation ministry. The announcement was made without discussing the issue with the Tatas at all.

The Tata airport project has seen almost unprecedented lobbying by interested parties, which has repeatedly held it up. "Successive governments have done nothing to kick-start the much-needed international airport at what is touted to be our information technology capital, Bangalore," said souces, "can you imagine Silicon Valley without its own airport?"

The Tatas have decided to diversify into aviation in a major way, but regulatory bottlenecks have held up the move. The group's proposal for a joint venture with Singapore Airlines has been shot down following political disapproval.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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