Thiruvananthapuram: The Airports Authority of India (AAI) will pump in Rs 203.84 crore by taking 26% stake in the Kannur International Airport Ltd (Kial), its MD G Chandramouli said on the sidelines of a workshop -- Effective Management of Contract - organized by the corporate vigilance department of AAI.
Chandramouli said the Kial board is looking forward to the government order to restructure the capital equity of Kial. "The authorized share capital amount is Rs 1,000 crore, but the board is yet to take a decision on how to raise that much money. At present, we are looking to raise a paid-up capital of Rs 784 crore," he said. The AAI board decided to take a stake in the project last month, but equity for phase 1 is yet to be tied up as the public has been slow to respond to buying Kial shares.
While most things are going according to the plan, the Kial board is grappling with issues such as eight feeder/access roads that are yet to be laid out by the state government. The board also has to come to terms with the fact that the cash flow in the initial years won't be adequate to meet debt servicing requirements because of heavy interests.
09/01/14 Sangeetha Nair/Times of India
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Chandramouli said the Kial board is looking forward to the government order to restructure the capital equity of Kial. "The authorized share capital amount is Rs 1,000 crore, but the board is yet to take a decision on how to raise that much money. At present, we are looking to raise a paid-up capital of Rs 784 crore," he said. The AAI board decided to take a stake in the project last month, but equity for phase 1 is yet to be tied up as the public has been slow to respond to buying Kial shares.
While most things are going according to the plan, the Kial board is grappling with issues such as eight feeder/access roads that are yet to be laid out by the state government. The board also has to come to terms with the fact that the cash flow in the initial years won't be adequate to meet debt servicing requirements because of heavy interests.
09/01/14 Sangeetha Nair/Times of India
