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Kerala may buy stake in Aranmula airport

Kerala may buy stake in Aranmula airport
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After announcing the launch of its own airline, Air Kerala, the Kerala government is now looking at picking up an equity stake in the upcoming greenfield international airport at Aranmula in Pathanamthitta district of the state.

It is learnt that Kerala Chief Minister Oommen Chandy has held preliminary talks with the promoters of KGS Aranmula International Airport Ltd, for picking up 10 per cent stake in the airport.

The meeting, which happened last week, also discussed the option for the government to nominate one person to the board of the company. The State government had already announced that Air Kerala would launch commercial operations from April next year. At the same time, Malaysia Airports, the technical and strategic partner of the project, has begun due diligence through KPMG to pick up 15 per cent equity stake in the airport.

The construction of the airport is expected to begin in two weeks’ time and airport operations may begin as early as 2014. Minor protests at the airport site are holding back construction.

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