Our Bureau

New Delhi , June 14

THE Union Cabinet, which is scheduled to meet on Tuesday, is expected to take up the issue of according clearance to the greenfield airport project coming up in Bangalore.

While the Cabinet had earlier approved the draft version of the concession agreement, the Bangalore International Airport Ltd (BIAL) had asked the Ministry of Civil Aviation to review the wording of some of the crucial clauses.

In an interview to Business Line earlier, the BIAL Chief Executive Officer (CEO), Mr Albert Brunner, had said the document was ambiguous in many places and on at least six vital issues, including the closure of the Hindustan Aeronautics Ltd (HAL) airport - which was the main pre-condition at the time of bidding - BIAL has sought corrections as the ambiguities may hit the business model of the Rs 1,300-crore project.

The CEO added that words such as "(the Government of India) will endeavour closure" of the existing HAL airport were not solid enough or in good faith, as the Union Cabinet had already approved the closure once the new airport at Devanahalli came up in three to four years' time. "This weakens the GoI's obligations significantly. We have sought firm confirmation on issues related to our tariffs. The agreement has to be a mutually acceptable. Without a proper one, there is no project," he said.

Incidentally, the greenfield project is expected to form the framework for other such projects coming up in different parts of the country.

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