Kochi: The Kannur International Airport Limited is keeping its fingers crossed on whether or not the Central government will meet its earlier commitment to invest Rs 260 crore through Airports Authority of India (AAI) in the project. If the government reneges on its promise, the company will sell its stake to the public, its managing director has said.
“The Central government has intimated us that it will limit its participation in the project to Rs 100 crore against Rs 260 crore it had promised earlier for 26 per cent stake,” Mr G Chanmdramouli told DC.
“The Chief Minister and the Minister in charge of airports have taken up the matter with the Centre. We expect a favourable decision soon.” The AAI stake in two other greenfield airports are Rs 50 crore each, he said.
At present, the public holding in the company is about 12 per cent, against a target of 16 per cent. KIAL had initially expected public participation to 49 per cent but the response was not very encouraging.
Mr Chadramouli said the public interest in the project has rekindled after work has started in full swing. “Last month we sold shares for Rs 4 crore,” he said.
The project has a committed investment of Rs 694 crore from stakeholders. A consortium of banks, led by Canara Bank and with South Indian Bank and Federal Bank as members, has promised a loan of Rs 892 crore. “We may go for the first tranche of loan by March next year when we shall require additional funds,” he said.
Work on the project is going ahead as scheduled though it faced some delay due to prolonged monsoon. KIAL hopes to start trial landing by 2015 December, the managing director said.
“We have given contracts at a very competitive rates, and there will be savings on this account.” The project is on 2000 acres and acquisition process for 1,200 acres has already been completed.
