The Infrastructure Development Department (IDD) of Karnataka government would seek the opinion of the Law Department on terminating the contract given to Gulbarga Airport Development (GADL) for the greenfield airport project. This comes after GADL failed to respond to a show-cause notice issued recently by the IDD. The department issued the notice as the project did not see any progress on the back of a dispute between the shareholders over alleged financial irregularities.
The state government awarded the public private partnership (PPP) contract to build, operate and run the airport on 30 years lease to GADL. Rahi Aviation Holdings (RAH) and IL&FS Transportation Networks (ITNL) formed GADL through a 60:40 joint venture agreement. While the company completed about 75 per cent of the project spending, the work was scheduled to be over in May 2012.
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