"India's first private international airport clears final hurdle"

Tuesday, December 21, 2004

India's first private international airport clears final hurdle
Agence France-Presse


BANGALORE, India, (AFP) - India's southern Karnataka state Tuesday gave the
green light for a consortium led by Germany's Siemens to build the country's
first private airport in the hi-tech hub of Bangalore.

Dharam Singh, the chief minister of Karnataka state, of which Bangalore is
the capital, said the state cabinet met on Tuesday and "unanimously decided
to clear the project."

Work on the 274-million-dollar project had begun in 2003 but hit a hurdle
this year after a change in the parties leading the provincial government.

The state is ruled by a coalition government of the Congress Party and
centrist Janata Dal (People's Party).

The Siemens-led consortium, which includes Zurich Airport Authority and
India's construction firm Larsen and Tubro, holds a 74 percent stake in the
airport.

The Airports Authority of India and the state government each hold a 13
percent stake.

Earlier the project ran into rough weather when the authority ruled a
private company could not build an airport. That decision was later
reversed.

Problems then cropped up over financing until a private Indian bank, ICICI
Ltd., agreed in 2002 to underwrite the cost of the airport.


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