NRI body urges Kerala to issue infra bonds for Kannur Airport

Dubai: A UAE-based NRI body has urged Kerala Chief Minister V S Achuthanandan to issue infrastructure bonds worth Rs 200 crore for Kannur International Airport Ltd (KIAL) project, as it will attract both NRIs and resident Indians to invest in it.
"It is a suitable project, but 50 per cent of the project is in debt. We see overwhelming interest from Pravasees to invest in the project as equity," K V Shamsudheen, Chairman of Pravasi Bandhu Welfare Trust said.
In an open letter he has written to the Kerala Chief Minister, which was also made available to PTI, Shamsudheen said the trust had given the same proposal to previous government as well.
"If the government approaches the RBI for this specific project, we hope it will permit the government to issue bonds for KIAL.
In that case, small investors can also invest in this project and will get some return on their investment," he said.
Speaking to PTI, Shamsudheen also said that approximately Rs 90 crore are remitted to Kerala everyday by non-Resident Keralites, but 95 per cent of these remittances are spent on non-productive investment.
22/01/11 PTI/msn.com

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Categories: Airports Jan 2011, New Jan 2011