Bharat Petroleum Corporation Ltd (BPCL) will invest Rs 170 crore to take a 21 per cent share in the proposed Kannur international airport project in Kerala.

A decision to this effect was taken at a meeting of the BPCL board, according to the Kerala Minister for Ports and Airports, Mr K. Babu.

TALKS HELD

Earlier, the Chief Minister, Mr Oommen Chandy, had held several rounds of talks with BPCL authorities in this connection.

A global tender for construction of the runway will be floated this month itself, Mr Babu said.

The Ministry of Forests and Environment extended its approval for the terms of reference for environmental clearance earlier in February.

This would be followed by a public hearing as part of environment impact assessment exercise. The process would be completed in three months.

According to the Minister, the first phase of the airport project would be completed in 2014. The first aircraft is scheduled to land in the following year.

INITIAL CAPITAL

Kannur International Airport Ltd, a special purpose vehicle, proposes to raise Rs 784 crore as capital in the initial phase. The total share capital is Rs 1,000 crore.

The Kerala Government will take a 26 per cent stake and government-owned institutions 23 per cent in the project.

Joint sector (private-public) institutions would have two per cent, with the rest 49 per cent open for subscription by the public.

The size of the public float would be of Rs 384 crore. With a face value of Rs 100, the minimum number of shares that needs to be applied for would be 500.

MINIMUM SIZE

Originally, this number was put at 2001, but was revised lower to 500 following a large number requests from the public.

The State Government share of Rs 130 crore has already been committed in the form of 645 acres made available for the project.

Kerala Minerals and Metals Ltd and Kerala State Beverages Corporation have invested Rs 5 crore each and Kerala State Industrial Enterprises Rs 10 lakh.

>vinson.kurian@thehindu.co.in

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