Agreements signed for airport (original) (raw)

Kannur International Airport Limited has signed an agreement with the Airports Authority of India (AAI) for establishing air navigation services and air traffic management at the airport. A Memorandum of Understanding was signed with the India Meteorological Department on Thursday for providing weather services.

Minister for Ports K. Babu told the media here on Thursday that the Kannur airport was the first greenfield airport to sign the agreement in terms of the greenfield airport policy of the Union government. The agreement with the AAI covered establishment of VHF communications, doppler variable omnirange and distance measuring equipment, voice recorder, GPS clock system, air traffic system automation, instrument landing system, communication lines and obtaining of radar signals from the Cochin airport.

Capital

Raising of equity capital for the Rs.1,890-crore project was nearing completion. Canara Bank, South Indian Bank and Federal Bank would be providing funding of Rs.892 crore. The loan agreements would be signed in two weeks.

Mr. Babu said 35 per cent of the equity would be that of the State government. Of 23 per cent equity earmarked for the public sector, the Bharat Petroleum Corporation had subscribed to 21 per cent.

The AAI has approved 10 per cent equity participation against 26 per cent expected of it.

Of Rs.130 crore (16 per cent) proposed to be raised through private placement, 13 per cent had been raised.

He said the tenders for the Vizhinjam port would be finalised soon.

'Talks on viability gap funding from the Centre had been finalised now and the project could go ahead.

Published - November 21, 2014 12:00 am IST