Defence Ministry clears Kerala’s fourth airport

The Defence Ministry has given its nod to Kerala's fourth airport, proposed in the northern Kannur district, leaving the Civil Aviation Ministry to issue the final clearance for the project it had agreed to in principle. It was Defence Minister A K Antony who conveyed the news of the clearance to state Home Minister Kodiyeri Balakrishnan and Education Minister M A Baby in New Delhi yesterday. Balakrishnan later told reporters that the mode of funding for the project would be decided later. Kerala Government would provide 10 acres near the proposed airport for the Navy to set up its facilities since its major academy was located at nearby Ezhimala.

The Kerala Ministers' meeting with Antony came on the eve of Chief Minister V S Achuthanandan's scheduled meeting with Prime Minister Manmohan Singh to press for Federal sanction for several projects in Kerala, which includes the Kannur airport proposal. The proposal now moves from Defence to the Federal Civil Aviation Ministry for its final clearance. Once cleared, it will be Kerala's second greenfield airport project, the first being the Cochin International Airport Ltd-run Nedumbassery airport. Civil Aviation Minister Praful Patel had suspended the recent two-runway caveat, following the State's persistent argument on a swift turnaround period for the project, citing the sizeable non-resident Keralite traffic and North Kerala's tourism potential.

Leela Hotels group, which is keen on participating in the project, has already signed up with Singapore Changi Airport for technical partnership. However, the official process for identifying the partner will be set in motion only after the bidding. Phase I is expected to cost Rs 10bn. The joint venture model already proposed envisages a debt-equity ratio of 70:30. Kerala Government and its institutions will hold 26 per cent. The remaining portion would be left for the public. Some 300 acres has already been acquired for the project but 1,200 acres more is required. The Airports Authority of India, which initially doubted the project viability because of Mangalore airport proximity and Kerala skies overcrowded with traffic from other three airports, subsequently corrected itself, arguing that the project was a viable model.

Courtesy: The Peninsula

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