Raytheon To Follow Tata Lead
The US-based Raytheon Inc, a member of the Tata-led consortium, has indicated that it will abide by the decision of the other consortium members on reviewing the move to pull out of the Bangalore airport project.
In reply to a questionnaire by Business Standard, Raytheon director for global corporate affairs and communications Barry French said that for now, the consortium's decision was to withdraw from the project.
"The Tatas _on behalf of the consortium _ have notified the Karnataka government that we are not continuing with the project. This notification was done with the full support of the consortium," he said.
When asked whether Raytheon would review its decision if the Tatas did so, he said: "We will continue to act as a consortium with respect to this project".
French added that Raytheon would confer with the Tatas if the government decided to close the existing Hindustan Aeronautics Ltd airport near Bangalore.
He pointed out that the consortium was selected over several competing groups in late 1995 and the feasibility study was completed in mid-1996. However, the project has been stalled since then. "Unfortunately, the delays have impacted the economics of the project," French said.
Tata sources said that even if they did opt for a review, it would be "after the Karnataka government procures all the relevant clearances". A new feasibility study would have to be conducted, they added. Further, the consortium would have to reverse its decision. Apart from Raytheon and the Tatas, the consortium includes the Changi Airport Authority of Singapore.
According to sources, Union civil aviation minister Ananth Kumar had told a meeting in Bangalore on June 17 that he would hold two tripartite meetings - one between the Union ministry, the state government and the defence ministry and the other between the Union ministry, the state government and the consortium to sort out all contentious issues. Neither meeting has been held yet.
Sources added that the state government was under tremendous pressure to retrieve the project and had asked Tata group chairman Ratan Tata not to publicly announce the decision to withdraw from the venture. They pointed out that after the recent meeting in Bangalore between Chief Minister J H Patel and Ratan Tata, it was Patel who told the media that the Tatas would review the decision, not Ratan Tata himself.
Asked what issues needed to be resolved, Tata sources cited the minutes of a meeting held in the ministry in November 1997, which had been agreed to by the consortium and the then civil aviation secretary M K Kaw. The minutes were, however, never signed.
The meeting had decided that the HAL airport would be closed for civilian purposes, except VIP movement, and that aeronautical charges at the proposed Bangalore airport would be 25 per cent higher than what is proposed to be charged by the Airport Authority of India (AAI) at major international airports for the next five years.
It was also decided that all cargo operations (in addition to passenger operations) would be shifted to the new airport. The meeting also agreed that Bangalore would be promoted as a regional hub for regional airlines, and the state government would be closely associated as a co-promoter of a regional airline in the area.
Bilateral rights, according to the minutes of the meeting, were to remain with the Centre and no guarantees were to be given to the consortium in this regard.