Two Greenfield airport projects at Shimoga and Gulbarga in Karnataka stalled

The Maytas-led consortium has taken a decision to put on hold its two Greenfield airport projects at Shimoga and Gulbarga in Karnataka due to the global recession. For now the projects are stalled and the partners will take the decision on it by end-2009, according to a report in Projects Today.

In 2007, Maytas-led consortium - comprising Hyderabad-based Nagarjuna Construction Company (NCC), Maytas and Vienna International Airport through its arm VIE India Project Development and Holding LLC- bagged an order to develop and operate both the airports.

Each of the airports was to be developed at an investment cost of Rs 100 crore and the consortium took up the projects on Build-Operate-Transfer (BOT) basis. In the current situation, the developers are finding it difficult to achieve financial closure for the projects.