<P> In December 1995, a consortium consisting of Tata Group, Raytheon and Singapore Changi Airport signed a memorandum of understanding with the State Government regarding participation in the project . In June 1998, however, the consortium announced it was pulling out of the project due to delays in government approval . These included disputes over the location of the airport and the fate of HAL Airport . </P> <P> In May 1999, the Airports Authority of India (AAI) and the Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC) of the State Government signed a memorandum of understanding regarding the nature of the project . It would be a public--private partnership, with AAI and KSIIDC having a 26% share and private companies having the remaining 74% . In January 2001, the State Government created the company Bangalore International Airport Limited (BIAL) as a special purpose entity and began searching for partners . By November, the project had attracted Unique Zürich Airport, Siemens Project Ventures and Larsen & Toubro . Construction was expected to begin in October 2002; however, governmental delays persisted . The concession agreement between the State Government, the Union Government and BIAL was signed in July 2004 . In it, BIAL required the closure of HAL Airport . </P> <P> Construction finally commenced on 2 July 2005 . When a study predicted the airport would receive 6.7 million passengers in 2008, the airport was redesigned from its initial capacity of 4.5 million passengers to 11 million, with the terminal size expanded and the number of aircraft stands increased . The cost of the airport rose to ₹ 1,930 crore (US $300 million). Construction was completed in 32 months, and BIAL set the launch date for 30 March 2008 . However, due to delays in establishing air traffic control services at the airport, the launch date was pushed to 11 May and finally 24 May 2008 . </P> <P> As the opening date for the airport approached, public criticism arose, mainly directed toward the closure of HAL Airport . In March 2008, AAI employees conducted a massive strike against the closure of HAL Airport along with Begumpet Airport in Hyderabad, fearing they would lose their jobs . The Bangalore City Connect Foundation, a group of citizens and businessmen, staged a rally in mid-May, claiming the new airport was too small for the latest demand projections . On 23 May, a hearing was held at the Karnataka High Court over poor connectivity between the city and the airport . Ultimately, the State Government decided to go ahead with inaugurating the new airport and closing HAL Airport . </P>

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