Shimoga Airport
Encyclopedia
Shimoga Airport is a India’s first private regional greenfield
Greenfield project
In many disciplines a greenfield is a project that lacks any constraints imposed by prior work. The analogy is to that of construction on greenfield land where there is no need to remodel or demolish an existing structure...

 airport
Airport
An airport is a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport...

 project under construction at Sogane village, near Shimoga, Karnataka
Karnataka
Karnataka , the land of the Kannadigas, is a state in South West India. It was created on 1 November 1956, with the passing of the States Reorganisation Act and this day is annually celebrated as Karnataka Rajyotsava...

. which will serve two cities Shimoga and Bhadravathi. Located at a distance of 8.8 km (5.5 mi) from Shimoga and 8.2 km (5.1 mi) from Bhadravathi. Shimoga Airport Project was taken up under Public Private Partnership (PPP).

History

Airports Authority of India
Airports Authority of India
The Airports Authority of India is an organization working under the Ministry of Civil Aviation that manages most of the airports in India. The AAI manages and operates 126 airports including 16 international airports, 89 domestic airports and 26 civil enclaves. The corporate headquarters are at...

 team of experts visited the two identified sites at Sogane near Shimoga and and Nagarabavi village near Ayanur on 4 April 2006. Of the two sites inspected by the AAI team, the one at Sogane was found most suitable, including those of the wind direction and wind velocity. The only problem with it is that the land is uneven and needs to be levelled. The other site near Ayanur was found inadequate in its width for the runway of the proposed airport.

Expression of Interest (EOI) invited in April 2007. Nineteen companies have expressed interest in developing airport, including Changi Airports International
Changi Airport Group
Changi Airport Group Pte. Ltd. was formed on 1 July 2009, and is currently the operator of Singapore Changi Airport. Its role was previously undertaken by the Civil Aviation Authority of Singapore or CAAS. The group's head office is in Terminal 2 of Changi Airport in Changi.-Profile:Changi Airport...

 and Tata group
Tata Group
Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Tata Group is one of the largest companies in India by market capitalization and revenue. It has interests in communications and information technology, engineering, materials, services, energy,...

 consortium.

The government of Karnataka awarded this project to a consortium of Maytas Infra Ltd (Now IL&FS Engineering and Construction Company Limited.), NCC Infrastructure Holdings Ltd (NCC) and VIE India Project Development and Holding on 15 November 2007, on a BOT
Build-Operate-Transfer
Build-own-operate-transfer or build-operate-transfer is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract...

 basis (Concession period is 30 years. The concession shall at the option of consortium be extended for a further period of 30 years).

A Special Purpose Company
Special purpose entity
A special purpose entity is a legal entity created to fulfill narrow, specific or temporary objectives...

 (SPC) by name Shimoga Airport Developers Pvt Ltd (SADPL), has been established to sign the Project Development Agreement (PDA) with IDD, Government of Karnataka. The Shareholding pattern of Maytas Infra, NCC and VIE will be 37%, 37% and 26% respectively in the SPC. The project development agreement was signed on 2 April 2008.

The foundation stone for the Phase I construction was laid by former Chief Minister of Karnataka, Shri B. S. Yeddyurappa on 20 June 2008.

The development and execution works would be done by Regional Airport-Holdings International Limited (RAHI), a joint venture between IL&FS Transportation Networks Limited (ITNL) and Comet Infra-Developments Private Limited (CIDPL). Phase I construction work started on 15 May 2010. Infrastructure Development Corporation Karnataka Limited (iDeCK) has been appointed as consultant to oversee the project implementation including verification of the physical and financial progress of the Shimoga Airport Development Project.

Land Acquisition and Lease

The government had acquired 662.38 acres of land, and 5.83 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....

s released for acquisition and development. Compensation for formers given, for private land 6 lakh for an acre of dry land and 7 lakh for an acre of wetland, and for farmers using government land 2 lakh per acre. About 130 acres of private land and 530 acres of government land acquired for the project. Nearly 47 families were forcibly evicted by the district administration on 2 September 2010, as they were reluctant to shift to alternative houses provided to them to make way for the construction of the airport at Sogane.

Government has an agreement with the joint venture firms for a 30-year lease wherein the latter would pay lease rent 20,232 per acre annually, so the firms has to pay 1.34 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....

 annually to the government. The lease rent will be increased by 10% every three years during the lease period. The land lease deed for the project was signed on 21 December 2010.
  • For Airport - 342 acres
  • For Landside development - 320 acres

Project Cost and Timeline

Total cost of the project is estimated at 230 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....

 from the earlier estimate of 110 crore
Crore
A crore is a unit in the Indian number system equal to ten million , or 100 lakhs. It is widely used in India, Bangladesh, Nepal, and Pakistan....

. Scheduled airport completion by June 2012.

Phase I

  • Develop small aircraft landing capability by June 2012
  • Construction of runway of length 1910m and width 30m
  • Develop the terminal and associated facilities

Phase II

  • Develop industry-specific geo-clusters
  • Airport operational for small aircraft by mid-2012

Phase III

  • Expansion within the next 7 years to provide landing capabilities for large aircraft
  • Construction of runway of length 3100m and width 45m
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