The Airports Authority of India (AAI) and Kannur International Airport Ltd. (KIAL) on Wednesday signed a Memorandum of Understanding (MoU) for 26 per cent equity in the Rs.1,892-crore greenfield airport coming up at Mattannur in Kannur.
The MoU was signed between AAI Chairman R.K. Srivastava and KIAL Managing Director G. Chandramouli at a function here. Minister for Aviation K. Babu; Chief Secretary Jiji Thomson; Additional Chief Secretary, Aviation, V.J. Kurian; Executive Director, Finance, Rajesh Bhandari; and Regional Executive Director, AAI, I.N. Murthy were present.
The AAI has come forward to invest Rs.100 crore in the equity capital of KIAL. The State has 35 per cent equity (Rs.350 crore), public sector undertakings 23 per cent (Rs.230 crore), and private sector 16 per cent (Rs.160 crore). The remaining Rs.892 crore needed is term loan from banks.
Addressing the gathering before signing the MoU, Mr. Babu urged the AAI Chairman to take steps to invest the remaining Rs.160 crore in the equity capital of the KIAL.
The Minister said 55 per cent of the runway work and 35 per cent of the terminal building had been completed. He reiterated that the first aircraft would land at the fourth international airport of the State in December this year. After trial run and clearances, commercial operations would begin in May next.
Mr. Babu said 90 per cent of the 2,061 acres of land needed had been acquired. Survey for the additional land was on. This was for increasing the runway length from the present 3,050 metres to 3,400 metres in Phase II.
Mr. Srivastava said those behind the Kannur airport should take into account the actual passenger movement, aircraft movement, and cargo movement at the airport instead of projections, and factor in the maintenance of the terminal building.
On the investment in equity in Kannur airport, he said it would not go waste.
The Chief Secretary said access to airports should be made passenger-friendly.
