| European firms queue up to get Rs14b Kannur airport contracts |
THIRUVANANTHAPURAM European companies are making a beeline to get contracts for the proposed Rs14 billion Kannur International Airport in Kerala where work is about to commence, according to an official.
Kannur airport is located 540km from the capital and is the fourth international airport in the state.
“The work for the proposed airport is planned in three phases with the first phase would be levelling of the ground over more than 1,000 acres of land. The tender for this was to end by June 30 and following requests from several European firms we might extend it by a month,” said the official on condition of anonymity.
Kannur International Airport Limited (Kial) has already been registered and would be built under a public-private initiative with former civil aviation secretary V Thulasidas being appointed the managing director of the new company.
“The levelling of the land is estimated to cost around Rs4 billion according to the detailed project report prepared by the Cochin International Airport Limited. There is a good rush of companies who are interested (in the project) which is expected to take 30 months,” said the official.
The second phase includes building the runway and apron and the third phase includes the building of the terminal and the air traffic control towers.
“We expect that by the end of 2014 the airport could be ready or latest by the first quarter of 2015,” added the official.
State Minister for Excise K Babu, who is also in charge of the airport development said that the local issues of land acquisition would be sorted out soon.
“Most of the people who gave the land have been compensated. The shares for individuals who have already applied (more than 6,000 applications) would also be taken up shortly,” replied Babu to questions that came up in the assembly on Monday.
In the first phase of allotment the state government has decided to issue share capital to the tune of Rs7.84 billion, of this the state government’ share has been pegged at 26 per cent.
At least 49 per cent of the shares have been earmarked for individuals and the Oommen Chandy government after public demand, especially the non-resident Keralite’s reduced the minimum amount of subscription from 2,001 shares to 500 shares. (Each share is priced at Rs100).
Bharat Petroleum Corporation Limited (BPCL), one of the largest public sector oil company, has picked 21 per cent stakes at Rs1.7 billion in the proposed airport.
The others who have picked up shares include the state-owned Kerala State Beverages Corporation, Kerala Minerals and Metals, Kerala State Electricity Board.
According to a study that was done earlier it was found out that in a year after it opens close to 1.5 million passengers would use this airport and it would handle 86,000 tonnes of cargo.
Indo-Asian News Service
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