Kannur airport to adopt Cial model for development

Mumbai: Following the successful replication of the Cochin International Airport Ltd’s (Cial) holding structure by other airports, Kerala’s fourth international airport at Kannur will also see the state government’s holding in it capped at 49% and the balance stake parcelled among financial institutions, entrepreneurs and other entities.
The Kerala government made a decision towards this in late February, said V. Thulasidas, special officer and director of Kannur International Airport Ltd (Kial), the company formed by the state government for the construction of the airport.
“Cochin airport’s model was (a) widely accepted model in the country and the state want(s) to cap pure government holding at 49%,” he said.
The Kerala government will form a consortium of public sector enterprises and other government-sponsored firms to pick stakes in the greenfield airport in north Kerala, said Thulasidas.
The state government will likely hold 24% and the public sector and government-sponsored firms 25%. The balance stake will go to private companies, high networth individuals and individuals.
No decision has been taken so far on a cap for shareholding by private investors. In Cial, the state government is the single largest shareholder with a 35% stake.
Thulasidas, a former chairman and managing director of National Aviation Co. of India Ltd, which runs Air India, said the idea behind adopting the Cial model was to fast-track the commissioning of the construction and commercial operations, as it allows for faster selection of international partners.
V.J. Kurien, chairman of the Spices Board of India, a trade body, and who was instrumental in forming Cial, said the Cochin airport model would be most suitable for Kial.
10/03/10 P.R. Sanjai/Live Mint

To Read the News in full at Source, Click the Headline

Categories: Airports Mar 2010, New Mar 2010