Singapore, Paris firms keen on state airports

Singapore-based Changi Airport Group and France’s Airport de Paris are understood to have evinced interest in jointly developing airports in Tier-II cities in Karnataka.

Karnataka government is embarking on a public-private-partnership (PPP) model to develop airports in Bijapur, Shimoga, Bellary, Bidar, Karwar, Raichur, Hassan and Gulbarga districts. The Karnataka government is planning to develop aviation infrastructure across the state by involving Airports Authority of India, the state government and private sector.

Senior state government officials indicated that officials from Changi Airport and Airport de Paris are among the global players who have shown interest in some of the airports being planned in Karnataka.

The state government has notified Bijapur, Hassan, Shimoga and Gulbarga for development and has identified private players to develop the project, while there is interest from private sector for Bellary airport as well.

Changi Airport Group’s international arm, Changi Airports International (CAI), recently took a 26 per cent stake in Bengal Aerotropolis Projects Ltd (BAPL). The project signifies CAI’s first investment in an Indian greenfield airport city project.

The Durgapur Aerotropolis involves the setting up of an industrial park, a logistics hub, an information technology park and a township around the privately-owned greenfield airport. BAPL has already entered into a Joint Venture Development Agreement with West Bengal Industrial Development Corporation, the West Bengal state government nodal agency, for facilitating the implementation of the project.

CAI has in place a Technical Service Agreement (TSA) to support the planning and development of Durgapur Airport, and will enter into an Operations and Management Agreement (OMA) to assist in the management of the airport once construction is completed.

The comprehensive TSA will involve CAI providing a suite of technical services for the development of Durgapur Airport. Support from CAI will come in four phases over a period of 24 months. These include reviewing the Airport Master Plan, selecting consultants in the pre-construction phase, review of the detailed engineering design and drawings of the airport and the related infrastructure and preparations for operational readiness during the set-up phase of the airport opening.

While the Karnataka government is upbeat on these plans, industry players observe that these airports may have to struggle in getting airlines to operate to these districts. “The only other airport in Karnataka, besides the one in Bangalore, which is active is that one in Mangalore. Even the airport in Mysore which is ready for air traffic has not been able to tap air traffic,” industry players noted.

For the record, Karnataka government plans to set up 11 airstrips in Davanagere, Raichur, Chikmagalur, Udupi, Kushalnagar, Gokarna, Chitradurga, Bagalkot, Haveri, Gadag and Kollegal.

Each airstrip would need 100-150 acres of land.