The Kerala government has approved the proposed Kannur international airport project. Estimated to cost Rs.930 crore, the project would come up on public-private partnership basis. Nearly 200 acres of land has already been earmarked for the project.

The joint venture will have a debt-equity ratio of 70:30 and the state government and institutions will participate in the equity to the extent of 26 per cent. Besides, the government will seek Rs.120 crore from the centre as infrastructure viability gap funding.

The project will be implemented in three phases. The Phase I of the project is expected to cost Rs.456 crore and Phase II is estimated Rs.95.5 crore. The project is likely to be sent to the centre for clearance. The acquisition of land for the project will require an outlay of Rs.140 crore which will begin after the Centre's approval.

The private sector partner will be selected in a transparent manner through competitive bidding.

Also see:

Leela Group keen to build Kannur airport (27-Nov-05)