K’buragi, Shivamogga Airport Deals Annulled

The government was forced to cancel the agreements due to squabbles among the venture partners, says Jayachandra

Published: 10th January 2015 06:02 AM  |   Last Updated: 10th January 2015 06:02 AM   |  A+A-

BENGALURU: The Cabinet on Friday decided to annul the land lease and investment agreements signed with Regional Airport Holdings International (RAHI) for developing Kalaburagi and Shivamogga airports.

RAHI is a joint venture of Rahi Aviation Holdings, IL&FS Transport and IL&FS Engineering.

Law and Parliamentary Affairs Minister T B Jayachandra told reporters that the government was forced to cancel the agreements due to squabbles among the venture partners. One of the partners has gone to court seeking arbitration proceedings against another, and hence the construction of the two airports was delayed, he said.

The state government has now decided to approach the Airports Authority of India (AAI) to finish the works at the two greenfield airports. 

Tumakuru Canal 

The Cabinet also gave its nod for the construction of a canal under the Upper Bhadra Project to irrigate 84,900 hectares in Tumakuru district. The project would use 29.90 tmcft of water under Scheme B of the Bachawat Tribunal award.

The canal would ensure water to the dry lands of Tarikere and Kadur in Chikamagaluru, Hiriyur and Hosadurga in Chitradurga and Chikkanayakanahalli and Sira in Tumakuru.  It would also fill 131 tanks. The entire Upper Bhadra Project is expected to irrigate 2.25 lakh hectares.

439 New GPs

The Cabinet has given its stamp of approval to carve out 439 new Gram Panchayats (GPs) in accordance with the recommendations of the  Nanjayyana Mutt Committee report.

The decision would result in a one-time expenditure of Rs 131 crore to set up these GPs and a recurring expenditure of Rs 69 crore annually.

City Cluster Project

The Cabinet also approved a project to improve the civic infrastructure in six or seven small towns around Bengaluru with assistance from the Asian Development Bank (ADB). Named ‘City Cluster Development Project’, it is being prepared by the Bengaluru Metropolitan Region Development Authority.

The Cabinet agreed to constitute an empowered committee and a steering committee for this, to be headed by Chief Secretary Kaushik Mukherjee.

Land for Petroleum Institute 

The Cabinet has agreed to provide 183 acres at Sulibele village (Hoskote taluk) to set up the Rajiv Gandhi Institute of Petroleum Technology to be set up by the Ministry of Petroleum and Natural Gas.

Govt Firm on Shifting Race Course

The state government has decided to stick to its decision to move Bangalore Turf Club out of the city. This would be conveyed to the Supreme Court which is hearing a case on this after the High Court upheld the state government’s stand. The Supreme Court had sought to know the state government’s position ahead of the next hearing on Tuesday. “We have decided to stand firm on relocating the race course. It should be moved out of the city,” Law and Parliamentary Affairs Minister Jayachandra said.


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