The Union government has granted ‘in-principle’ approval for setting up of a greenfield airport at Kannur in Kerala. The project is to be implemented on Build Own and Operate (BOO) model, said the Union Minister of State for Civil Aviation, KC Venugopal in the Lok recently.
The State Government of Kerala has appointed M/s Kerala Industrial Infrastructure Development Corporation (KINFRA) as a nodal agency for the construction of the Kannur Airport.
M/s KINFRA has formed a Special Purpose Vehicle (SPV), namely M/s Kannur International Airport Limited (KIAL), for the development of the airport. Ministry of Environment & Forest has granted necessary environment clearance to the project. M/s KIAL has acquired 1278 acres of land so far. M/s KIAL has requested for financial assistance under Viability Gap Funding (VGF) scheme. Ministry of Civil Aviation has supported the request of M/s KIAL and requested Ministry of Finance to grant the VGF.
The project is at Request for Proposal (RFP) stage for awarding the contract for airside works. As per the schedule of bidding process, the contract is to be awarded by the end of September, 2013. This project is closely monitored by the Ministry of Civil Aviation and the Prime Minister`s Office.
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