|
Dear Chief Minister,
As you are aware, the Bengaluru International Airport has been built by a Private - Public Consortium of Shareholders - Siemens, L&T, Zurich Airport, Government of Karnataka, and Government of India.
As part of the contract signed between the Government and the Consortium, the present HAL airport was to be shut down and during the erstwhile government ruling, HAL airport closed down in May 2008.
However, the closure of HAL airport and creation of an airport monopoly, with the background of a booming aviation travel market have resulted in the current raging debate about the wisdom of closing down precious infrastructure and the consequential monopoly of the new Airport. This is the broader and more important public policy issue – in addition to the other important issues of public interest, i.e. connectivity and convenience to the travelling public.
The argument being used by the new BIAL airport consortium is that its significant investments need a monopoly to ensure financial returns on this large investment. However, there are a number of other questions that arise from this claim that need clarification in the public interest – especially since the shareholders of the company are also its largest contractors, thereby creating a potential conflict of interests in terms of the capital costs and investments .
I would request an open and transparent public consultation around this issue, particularly in terms of:
- Project cost, viability and the required returns of the BIAL airport
- Monopoly versus Competition for airports in the City
I am enclosing a cutting in Times of India for your reading.
I look forward to the start of this public consultation at the earliest.
Very truly yours,
Rajeev Chandrasekhar
Shri B S Yeddyurappa
Hon’ble Chief Minister of Karnataka
Bengaluru
|