Following Airports Authority of India declining to take up the airport project in Kalaburagi, the State Cabinet on Thursday decided to give the project to the Public Works Department (PWD) to complete it.
At present, nearly 70 per cent of project work has been completed. All construction activity has ceased, with the airport’s two main joint venture partners fighting between themselves. A total of 567 acres of land was acquired for it.
Addressing presspersons, Law and Parliamentary Affairs Minister T.B. Jayachandra said the AAI said it would only take up maintenance of the airport and would not develop it.
Regional Airport-Holdings International Ltd. (Rahi), a 60:40 joint venture between Rahi Aviation Holdings Pvt. Ltd. (RAH) and IL&FS Transportation Networks Ltd. (ITNL) had signed an MoU with the government for the construction of airports in Kalaburagi during the previous BJP government.
Both firms are accusing each other for the delay and have gone to the court to settle the dispute.
The project work came to a grinding halt following a dispute between the shareholders over alleged financial irregularities. The government has terminated the contract.
For the first time, the government has announced that it will hold its extended session of the State legislature on the budget in two places — the first half will be held in Belagavi from June 29 to July 10; and the second in Bengaluru from July 13 to 24.
Mr. Jayachandra said it was decided to hold the session in the two places and during the session, both houses of the legislature would pass the State Budget.
Legislature session to be held in Belagavi and Bengaluru
First half in Belagavi from June 29 to July 10
