Wednesday, June 12, 2013

Exclusive! IL&FS Delays add to Gulbarga woes

Neelam Mathews
June11, 2023

The ambitious airport project by developers at Gulbarga is facing cost issues with IL&FS defaulting and dilly dallying on its promise to clear funds it had committed, a letter by the Karnataka  government in early April, alluded. The deadline given for end May has passed and no word has come in from IL&FS we learn, from state government sources.
"This is a big jolt to the government's touted regional airlines policy. Developers will not come in with money if partners default like this," said an airline official on anonymity. RAHI, the developer had, enthusiastically planned 99 regional airports for India after the government had said it wanted to improve and extend connectivity to remote areas.

The Karnataka government had written to the shareholders, the letter was reviewed by Aerospacediary, to "quickly get back ..with a comprehensive plan by completing construction of the adhering to the extended timeline...."

IL&FS had said in a letter dated May 8 it was "initiating discussion with a consortium of banks to resume funding to Gulbarga project for early completion." As we have learnt in the past, empty vessels make the most noise.
We hope this project that was a signal to the growth of regional connectivity won't see a natural death. Else, Mr Ajit Singh will have to face a volley of questions on promises made but not delivered, and how not to treat the private sector.

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