The State Government has evinced interest in taking a 10 per cent stake in the upcoming Rs 2,000-crore Aranmula International Airport project.

A decision in this regard is likely to be taken at the Cabinet meeting scheduled to be held on Tuesday at Thiruvananthapuram, sources close to the development said.

The 10 per cent equity in the project will provide the government with a berth in the Board of Directors of the airport company. The airport project will have a total equity portion of Rs 700 crore, the sources said.

The Aranmula airport project in Pathanamthitta district is being promoted by the Chennai-based KGS group of companies.

The company has in its possession 700 acres of land in Aranmula. The project is located at the central Travancore belt and the company is looking at the NRI population in the area for its success. It is pointed out that around 40 per cent of the air traffic of the State originates from within 40 km radius of the proposed airport.

(This article was published on December 17, 2012)
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