Even as the green field international airport at Kannur is gearing up for commissioning and commercial operations by September this year, the government has given the go ahead to increase the equity of the airport by ₹500 crore.
With this, the Kannur International Airport Ltd. (KIAL) can approach financial institutions for term loan requirement of ₹222.2 crore. The infusion of equity was for increasing the length of the runway from the present 3,050 m to 3,400 m, official sources said.
The decision to increase the equity was taken at a meeting of the governing body of KIAL chaired by Chief Minister Pinarayi Vijayan here on November 30 last.
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At present, 35% equity is with the State gvernment, 25% with Public Sector Undertakings, 10% with Airports Authority of India (airport PSUs) and the remaining 30% with private individuals and institutions.
Under the existing equity-debt pattern, the equity portion is ₹1,000 crore and the debt portion is ₹892 crore through consortium of banks with Canara Bank as the lead partner. South Indian Bank and Federal Bank are the other partners.
With the infusion of ₹500 crore equity, the existing equity structure will also change drastically. Already, private individuals and institutions had benefited from the decision of the AAI to limit its equity to 10%.
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The goverment has given its nod for negotiated purchase of 0.05948 hectares of land from Keezhallur and Pazhassi villages for the rehabilitation of families evicted from the CAT 1 lighting and peripheral area of the upcoming airport.
The 0.266 hectares needed for airport development will also be acquired under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, and negotiated purchase. Another 1.108 hectares will also be acquired using the twin options.
Over 90% of the works on the air-side and 82% of the works of the integrated terminal building had been completed and the aim is to complete the works by April-May this year.