Thiruvananthapuram: Larsen & Toubro yesterday signed a contract with Kannur International Airport (KIAL) to construct runway and airside at the Kannur airport, scheduled to open on December 31, 2015.
The contract for engineering, procurement and construction work was awarded to L&T on November 5.
Ports Minister K Babu, who also handles the aviation portfolio, told reporters here that 49 percent of the Rs1,000 crore authorised share capital of KIAL has been kept aside for individuals, who can now apply for buying shares.
“During the regime of the previous Left government, they decided the value of one share at Rs200,100, but we have reduced that to Rs50,000,” Babu said.
“More than 6,000 people had then applied, of which 4,000 people showed interest. Now that the work has begun, we expect that more people will now apply for shares,” Babu told reporters after the signing ceremony.
Babu said investing in airports in the state has proved to be successful, as in the case of the country’s first airport under the public-private partnership model, Cochin International Airport.
“All those who have purchased shares at the time when it was opened in the mid-90s, by now have recovered their investment by way of dividends that has been paid out till now,” Babu said. “Even the state government has recovered its investment.”
The equity of the airport includes 26 percent for the state government, 23 percent has been given to state and central public sector units, two percent to INKEL (Infrastructures Kerala Limited, a Kerala government company) and the remaining 49 percent would be for individuals.
Airport managing director G Chandramouli said those individuals who wished to subscribe to the shares can log on to the www.kannurairport.in and inform their interest.
The Kannur airport is coming up in an area of around 2,000 acres and is expected to cost Rs1,800 crore. “By September 2015, we expect to have the trial run of the airport and latest by December 31, 2015, the airport would be opened for service,” said Babu.
Kerala has three international airports at Kozhikode, Kochi and Thiruvananthapuram.
Heliports in districts
The government also said it has decided to open heliports in all 14 districts of the state to facilitate tourism.
“We had earlier decided to open feeder airports in districts like Wayanad and Idukki, but faced opposition to it from the local people. Hence we have decided to drop that proposals and instead will open heliports — a facility for the smooth landing and takeoff of helicopters,” Babu sasd.
He said each heliport will come up on 10-acre plots. “Today air travel has become the order of the day and tourism here is doing well... we feel helicopter taxi services would be good and hence we decided to go forward,” said Babu.
With the work agreement having been inked for a fourth airport at Kannur and a fifth one proposed at Aranmula having got the environment clearance, there isn’t much land left for more airports in a land-deficient state.
IANS
