Ballari airport: IDD gives nod to cancel deal with Chennai firm

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Highlights
  • The infrastructure Development Department (IDD) has decided to cancel its deal with Marg Ltd, a Chennai-based infrastructure developer, for the construction of a greenfield airport in Ballari.
  • The state Cabinet is expected to take a final call on the same in its next meeting.
  • According to sources, Karnataka State Industrial and Infrastructure Development Corporation Ltd (KSIIDC) will execute the project.
  • The state government, through its infrastructure development department, had signed an agreement in 2010 with Marg Ltd to develop a greenfield airport in Ballari on 900 acres at a cost of Rs 330 crore, on a build, operate and transfer for 30 years basis.
  • According to the terms of agreement, the Chennai-based company was supposed to build the airport in 24 months. But, 12 months on, no visible progress was witnessed on the ground.
  • The IDD, in its meeting chaired by Infrastructure Development Minister V Somanna, resolved to cancel the agreement with the Marg Ltd. The minister instructed the officials to speed up the process and revive the project in a month’s time.
  • Ballari district incharge Minister B Sriramulu, IDD additional chief secretary Gaurav Gupta, MLA N Y Gopalkrishna, KSIIDC MD M R Ravi, executive director D P Prakash and others were present in the meeting held in Bengaluru on Friday.
  • With the Public-Private Partnership projects for developing airports failing to take off, the department has decided to take up the projects on its own on engineering, procurement and construction (EPC) basis, sources in IDD said.
  • The government had acquired over 900 acres at Chaganuru village in Ballari taluk despite the stiff resistance by the farmers and handed over the same to Marg Ltd. But the Chennai firm failed to execute the project.
  • There is a huge demand for air service in Ballari. But the Jindal Vijayanagar airport at Toranagallu, the only private airport under Udan, is yet to take off when it comes to civil aviation. The long-pending demand for the airport has remained unfulfilled.

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