Saturday, March 18, 2017

Equity of Kannur airport increased by Rs500 crore

Thiruvananthapuram: 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.

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.
17/03/17 S. Anil Radhakrishnan/The Hindu