Kerala’s Greenfield airport gets government nod

18 January, 2008:

The Centre has approved in principle the construction of a Greenfield International Airport in Kannur, Kerala.

The nod for the airport, which will be built via the Pubic Private Partnership route, has come following the relaxation of the policy on airport infrastructure relating to Greenfield airports. The proposed airport is to be set up at about 80 km distance from the Kozhikode airport, and about 229 km from the Kochi airport. Seen as a project that will provide a shot in the arm for the tourist industry in the state, the Kerala government also proposes to make it a cargo hub for perishable cargo like cut flowers, vegetables, fruits, sea food, and the like.

The commissioning of Kannur airport would result in around 55 percent of the traffic at the Kozhikode airport being diverted. Also, since airports Kozhikode and Thiruvananthapuram are AAI airports, the proposed airport could hit AAI revenue too.

According to a report, security, air traffic control, customs, immigration, met and the like would be reserved for government of India agencies. Provision of these services would be on cost recovery basis and the airport operator would enter into agreement with the respective agencies. it would be part of revenue expenditure and as such would not be capitalized. For performance of these services at the airport, necessary provisions would need to be made by the relevant government agencies to ensure that there is sufficient capacity to provide these services, as and when required.

The airport will come up on 2000 acres of land, with a single runway. The project would be implemented through the Pubic Private Partnership (PPP) route with an estimated project cost of Rs 929.5 crore, excluding costs pertaining to land acquisition, resettlement and rehabilitation which would be borne by the Kerala government.




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