New Delhi: The Goa government will not hold any stake in the proposed greenfield airport in Goa but will have board representation, with veto powers, in the company that builds and runs it, civil aviation ministry officials have said.
This is departure from the practice of state government's being part owners of the greenfield airports, such as those in Hyderabad and Bengaluru and one proposed one in Navi Mumbai. "So, the state gets the golden share in the project. Not fetching equity in the project means the state government will not have to put in any fund into the project," a senior ministry official, who did not wish to be named, said, adding that the Goa airport will be the first airport project in the country where the state government will not be part owner.
Golden share in a company gives control of at least 51% voting rights, especially when held by government.
25/01/16 Mihir Mishra/Economic Times
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This is departure from the practice of state government's being part owners of the greenfield airports, such as those in Hyderabad and Bengaluru and one proposed one in Navi Mumbai. "So, the state gets the golden share in the project. Not fetching equity in the project means the state government will not have to put in any fund into the project," a senior ministry official, who did not wish to be named, said, adding that the Goa airport will be the first airport project in the country where the state government will not be part owner.
Golden share in a company gives control of at least 51% voting rights, especially when held by government.
25/01/16 Mihir Mishra/Economic Times
