Centre rejects State plea on rail link to BIA

New Delhi: The State government had approached the Civil Aviation Ministry seeking equity participation from the Airport Authority of India (AAI) in the project. The plea was rejected due to AAI’s other financial commitments, a senior official in the ministry told Deccan Herald.
“The ministry has asked the Karnataka Government to build the project as a totally state-sponsored project,” said the official.
While approaching the Centre, the State had said that considering that the high-speed rail link is also part of the airport project, the AAI can participate in the project by investing around Rs 500 crore.
However, the Centre has promised the State that it will give viability gap fund (VGF) for the project which is 20 per cent of the total project cost (around Rs 1,200 crore).
07/08/10 Ajith Athrady/Deccan Herald

To Read the News in full at Source, Click the Headline

Categories: airports aug 2010