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3M views 9K replies 302 participants last post by  mahjunu 
#1 ·
#161 ·
^^

BPCL too joining! Can both take stake together?
Why not!!!

Infact, the concept of exclusive rights and equity in-return is an out-dated in aviation sector.... Eariler AI was doing to same, that it will commence services from Cochin, only if they given exclusive rights for Ground Handling.... And we all know the story rest...

Rather in my opinion, atleast Kannur should have an Open Farm Hydrant Access (OFHA), so that any airline can have multiple choice of which brand they would like.... Perhaps, some oil cos give more credit than others, hence it becomes more competitive.... One reason of aircrafts choosing Hyderabad, despite of its high cost is that, it has OFHA and few foreign oil companies gives more longer credits than Indian ones....

Infact, as a new airport, Kannur should experiment all the modern concepts, rather than restricting to traditional practices... If HPCL wants to invest unconditionally let them....

I would say, even CIAL must revise the contract with BPCL to allow OFHA... Once they list the shares, it can be more easy, as if BPCL threatens to pull out, some others can easily buy that in open market......

There is no issue if HPCL is ready to maintain OFHA and KIAL awarding exclusive rights to operate the farm, not the ATF.....

Perhaps, we Malayalees are too much fashioned with PSU investment... I feel, there is nothing wrong, if same number of shares being given to public or corporates as nothing big is going to happen if Govt have 51% stake directly/indirectly......

Why should Govt have all Fun together?
 
#162 ·
HPCL to take 11% equity in new Kerala international airport
Sanjay Dutta, TNN | Feb 27, 2012, 05.41AM IST
NEW DELHI: The country's third-largest state-run fuel retailer Hindustan Petroleum is to take 11% stake in a special purpose vehicle formed with Kerala government participation for building a new international airport at Kannur in the state's northern part, top company executives said.

Petroleum is to take the stake on condition that it will have the right to design, develop, operate and maintain all facilities required for refuelling aircraft and other consumers either on its own or jointly with Kannur International Airport Ltd (KIAL).

In case KIAL wants to grant such rights to more than one state-run refueller, Hindustan Petroleum proposes to tweak its investment in airport equity in proportion to its share of equity in the joint venture that would be formed for building and operating fuel facilities at the airport.

KIAL proposes to build the airport at a cost of Rs 1,130 crore, with an internal rate of return ranging between 12% and 18%. The state government has sought equity participation of 23%. Of this, 4.3% stake has been reserved for state government undertakings and the remaining 18.3% for central government units. Hindustan Petroleum's equity would require an investment of Rs 55 crore.

The government recently allowed airlines to directly import jet fuel with the aim of helping them save sales tax. For Hindustan Petroleum, taking equity in the airport project is a strategic move to create future entry barriers - making it difficult or expensive -- for private sector competitors such as Reliance Industries.

State-run fuel retailers are present in more than 110 airports and airfields across the country. In contrast, Reliance has jet fuelling services at only 27 locations.

The state fuel retailers have built a huge infrastructure for transporting, storing and filling jet fuel - which, aviation industry sources say, can be a logistical nightmare in view of the technicalities involved and high degree of quality and precision required for such operations.

The new airport is being built between Kozhikode and Mangalore. It is expected to be developed in six phases and cater to the Kannur-based NRI population that constitutes a major portion of passenger traffic at Kozhikode and Mangalore airports.

KIAL has been registered as a government company with the chief minister as chairman and four ministers on the board. Former Air India chairman V Thulasidas is the managing director.

The state government has acquired 1,275 acres of land for the aviation-related part of the project. Another 725 acres is being acquired for commercial purpose. The state government will retain 26% in KIAL through transfer of the acquired land. The airport can be built and start operating on the parcel of land that has been already acquired.
Sad low in central govt politics, petroleum minister forcing hpcl to invest in an unrelated industry :bash:
 
#163 · (Edited)
HPCL to take 11% equity in new Kerala international airport
Sanjay Dutta, TNN | Feb 27, 2012, 05.41AM IST

Sad low in central govt politics, petroleum minister forcing hpcl to invest in an unrelated industry :bash:
What wrong in that? It was a standard pratice across the world in 80s for petroleum companies to hold stake in airports in return of aviation refuelling rights... In India, since all airports were under Govt control (not corporate in nature), such an option was never exercised in past...

When India's first PPP airport- CIAL was opened, it adopted the same practice by which BPCL got exclusive rights in return of stake.

But yes, in today's context exclusive rights in return of equity stake is not something desirable from Airport operator's point of view, not Petroleum company's view. This is because there will be no flexibility in decision of Hydrant access.... Thats why today, most of the corporatized airports in India like BLR, BOM, DEL, HYD etc choosing Open Access systems, by which a concessionaire will operate the hydrant farm with Airlines choosing the brand to supply....

In my view too, Kannur should have open access facility, than opting age old Exclusive rights, which is a monopoly in making.... But I don't think, its un-related and petroleum companies would be directly interested, as they gain an absolute monopoly for its brand in that airport.... Its definitely in interest of the company, even if it may not in interest of airlines and airport as whole........
 
#164 ·
State oil companies eye stake in new Kannur Airport
State-run oil marketing companies are queuing up for a stake in the proposed new international airport at Kannur in Kerala as they aim to secure lucrative jet fuel sales and control the related infrastructure.

Apart from Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) which have already shown interest to pick up an 11% each in the airport, Indian Oil Corporation, the largest state-run fuel retailer in the country, has also joined the race for a minority stake in the airport, top executives told ET.

State firms, which resent moves by airlines to directly import jet fuel instead of relying on them, stand to gain significantly from jet fuel sales an the airport that will handle more than a million passengers when it becomes operational after three years.

"We have met the airport management recently and are keen to pick up equity in the airport as we think it has immense potential," said a senior source close to IOC. "As a part of our overall discussion we did talk about exclusive fuel rights but things still have to be finalised," the source added.

He refused to divulge how much stake IOC will be picking up and also did not comment on the investment it was lining up for the stake acquisition, "It is too premature right now," he said.

Srikumar N, executive director, corporate communication, IOC told ET, "All I can confirm is that we are keen for equity participation in KIAL and are in dialogue with them. However it will not be appropriate to share any other details including commercial details if any, at this juncture." HPCL is keen to pick up 11% equity in the airport for 55 crore, while BPCL is keen to invest 55-60 crore in the project, "We have contacted the management and are keen to invest around 55-60 crore in the Kannur Airport to pick up around 11% stake," said RK Singh, CMD, BPCL.

"The Kerala state government, the promoter of the project, has set aside 23% equity for participation by public sector undertakings, so both HPCL and BPCL have expressed their intent to participate officially, IOC has also had discussions with us," V Thulasidas. Managing Director, Kannur International Airport (KIAL) told ET. He was earlier the chairman of Air India.

The state government of Kerala, the promoter of the airport project own 26% equity in the project, 23% is set aside for PSU's, two% for state-owned public sector units and 49% for private investors. The total project cost of the airport has been fixed at 1,130 crore, of which 500 crore would come by way of equity and the rest through debt.

The airport is expected to have an annual traffic of more than 1 million international passengers and above 0.3 million domestic passengers. Around 1,276.03 acres of land has been acquired for the airport project as of now out of the 1,284 acres notified. The airport is set to be operational by 2015.

It is slated to cater to the large number of non-resident people from Kerala in the districts of Kannur and Kasargode who now have to either travel to Kozhikode or Mangalore. Kerala already has three international airports at Kochi, Kozhikode and Thiruvanananthapuram.

All the OMC's investing in the project are keen to get exclusive rights to design, develop, operate and maintain all fuel facilities at the airport, either solely or jointly with KIAL, but KIAL still has to make up its mind about granting exclusive rights to a particular OMC or go for the joint venture model called fuel farms.

Under this model which is currently operational only at the Hyderabad airport operated by the GMR group, any oil company can supply fuel to airlines in accordance with an agreement entered into with the operator of the fuel farm, which in the Hyderabad airports case is Reliance Industries.

New airport operators and airlines believe that this model encourages greater competition among oil companies for supply of fuel, leading to better service and competitive pricing.
 
#167 ·
The State government has proposed that a society named Kannur International Airport Promotion Society be formed to raise funds for Kannur International Airport.

A nine-member governing council has been set up with Mr K. Babu, Minister for Ports and Excise, as chairman, and Mr V. Thulasidas, managing director, Kannur International Airport Ltd, as vice-chairman.

An executive council will be set up with Mr Thulasidas as president. These two bodies will deal with the nitty-gritty of formation of the airport promotion society.

The governing council members are Mr Tom Jose, Principal Secretary, Transport; Ms C. R. Vatsala, Additional Secretary; Mr R. Ajayakumar, Joint Secretary, Finance; Mr P. Balan, Manager, Corporate Affairs; Mr A. S. Jayakrishnan, Finance Manager; Mr K. S. Shibukumar, Deputy Project Engineer; and Mr Anish Kurian, Company Secretary.

Most of these officials are being co-opted as members of the executive committee as well, the spokesman added.

http://www.thehindubusinessline.com/industry-and-economy/government-and-policy/article3302979.ece
 
#168 ·
http://timesofindia.indiatimes.com/...ort-harbour-projects/articleshow/12711681.cms

SBT keen to finance airport, harbour projects


KANNUR: The State Bank of Travancore (SBT), which is in an expansion mode in Kannur and Kasaragod, has evinced interest in lending loans to the upcoming Kannur airport project and Azhikkal harbour project. It is also willing to consider equity partnerships in these projects.

"Like any other commercial bank, we will provide loan to the consortium building the airport or seaport. Also if need arises, we would consider taking equity partnerships in these projects," said P Nanda Kumaran, managing director of SBT, on Tuesday.

Since March 2011, the bank has opened nine new branches in the two districts. "We plan to open at least 20 branches in Kannur and five in Kasaragod this financial year," said the SBT MD. According to him, the bank in the region has recorded a growth of Rs 360 crore in business in the last financial year.

In the next 12 months, it plans to open another 100 branches in Kerala and other metro cities across the country. It already has a total of 887 branches. In Kerala, SBT will open at least one branch per village.

In a move to attract NRI business, the bank has set up a representative office in Dubai. To enable instant money transactions for NRIs, it has also signed pacts with 34 money exchange firms in the Gulf. The bank is now in talks with eight affluent Malayalis, who have found a place in the top 30 wealthy people in the Gulf.

To augment its gold loan and issuance of gold coins, the bank is planning to open more Gold Point branches in the two districts apart from the existing two.

Under the financial inclusion plan, SBT has already adopted the business-to-consumer model with the Kudumbasree to cater to the financial needs of the public in Mayyil village. It is also planning to open a new branch there. SBT will soon start handling more treasury businesses in Kannur apart from the existing seven centres where treasury businesses are undertaken.

Nanda Kumaran allayed the fears over financial recovery from students. "In select cases, we start recovery only after a moratorium period of two years after course completion. However, this moratorium is not applicable for students who get placed in jobs immediately after the course," he said.
 
#171 ·
Kannur Airport detailed project report submitted by CIAL


- Project cost escalated to 1600 crores
- No change in runway length: 3400 meters
- New location determined for second runway. Change in land acquisition notification is required due to this.
- KIAL director board will discuss the report and make final decision.
- Runway tender expected to happen in May.
 
#172 ·
Bid for Kannur runway in May
Kannur International Airport Ltd has decided to float a global tender for the proposed 3,400-m-long runway by May, based on the advice given by the project consultant, Cochin International Airport Ltd.

KIAL board, which met here under the chairmanship of the chief minister on March 25 reviewed tender documents and the detailed airport project.

CIAL has revised the project cost from Rs 1,000 crore to Rs 1,400 crore for project, for which already 1,085 acres has been acquired.

The excise and ports minister K. Babu said the company would soon reopen the public participation option, based on the minimum individual share equity of Rs 50,000 instead of Rs 200,000 fixed by the LDF Government.

“The work on the runway would start this year and the first flight would touch down at Kannur in 2015”, said Babu, who is also the vice-chairman of KIAL board.

KIAL has been modeled on CIAL, with Kerala Government holding 26 percent, public undertakings 23 percent, another 2 percent by government-promoted entities and the remaining 49 percent
private placement.

KIAL has collected Rs 17.3 crore from individuals and institutions under the private placement. Subscribers would soon be asked to apply afresh for shares.

Of the acquired land, 453 acres has been converted into government equity, valued at Rs 122 crore. The rest of the land will remain with KIAL on a 60-year lease.

The Government has set up Kannur International Airport Promotion Society, which will play the role of a facilitator between KIAL and investors.

Private placement shares will be first picked up by the society and transferred to applicants.
 
#173 ·
International passengers to outnumber domestic ones at proposed Kannur airport


THIRUVANANTHAPURAM: The number of domestic and international passengers who would be using the proposed Kannur airport would touch 2.94 million in 2021, according to a detailed project report prepared by the Cochin International Airport Limited (Cial). The airport would also begin making profit by then, the report says.

While international passengers (2.03 million) would comprise the major share of the figure, the number of domestic passengers has been estimated to be around 0.91 million.

In the year of its inception in 2015, the number of domestic passengers expected to use the airport is 0.61 million, and international passengers 1.32 million. The passenger traffic is expected to increase seven-fold, touching 15 million by 2045.

According to Cial projection, the number of international passengers using the airport is expected to increase significantly when compared to domestic passengers.

The number of international passengers is projected to increase from 1.32 million in 2015 to 3.79 million in 2030. It would leapfrog to 7.79 million by 2040.

A similar steep rise has not been projected in the case of domestic passenger traffic. The number of domestic passengers, estimated to be 0.61 million in 2015, has been projected to go up to 1.59 million in 2030 and 2.95 million in 2040.

http://timesofindia.indiatimes.com/...posed-Kannur-airport/articleshow/12990051.cms
 
#174 ·
Rs 3,199 crore required for construction of Kannur international airport

THIRUVANANTHAPURAM: A whopping Rs 3,199 crore will have to be pumped in in three phases to make the proposed Kannur international airport a reality. The scheme includes associated projects like shopping malls, convention centres and township for CISF personnel manning the facility.

According to the calculation of the Cochin International Airport Limited (Cial), Rs 1,391 crore will have to be spent in the first phase, Rs 363 crore in the second phase, and Rs 1,444 crore in the third phase of the project.

The largest sum, Rs 750 crore, will be required for constructing the airport terminal: Rs 250 crore in the first phase and Rs 500 crore in the third phase. The runway will cost Rs 402 crore: Rs 102 crore in the first phase, Rs 100 crore in the second phase and Rs 200 crore in the third phase. The taxiway and taxi links will cost Rs 36 crore in the first phase and Rs 145 crore in the next. The earth work for the runway, runway lighting and taxiway will require Rs 338 crore.

As per estimates, Rs 130 crore will have to be spent on land acquisition. In addition to these, other facilities like road to the terminal building, cargo building and electrical substations are expected to cost around Rs 100 crore.

A new green field road -- Kannur-Mattannur Road -- has been planned as the main access to the airport to ensure fast and free movement of traffic. It will not have any traffic junctions, and will have provision for entry and exit ramps for joining and exiting traffic from connecting roads.

"A society has been formed to expedite fund mobilization for the project. The members of the society have already met once. We have also got some offers from some cooperative societies," said V Thulasidas, Kial managing director.
http://sp.m.timesofindia.com/PDATOI/articleshow/12990029.cms
 
#175 ·
Kannur airport to make profit in sixth year of operation


KOCHI: The Kannur International Airport, which is expected to take off by 2015, will begin churning out profits by 2021, according to Cochin International Airport Limited (Cial), the consultant for the project.

In a detailed project report (DPR) submitted by Cial to the government last month, it has projected that the Kannur International Airport Limited (Kial) will make a profit of Rs 3.06 crore after paying off the taxes in the sixth year of the project becoming operational.

"We hope to tender the work of the runway by the second half of this year. Once the work begins, it is expected to take two-and-a-half to three years to complete," managing director of Kial V Thulasidas told TOI.

As per the projection, the loss in the initial year will amount to Rs 75.10 crore which will be reduced systematically over the next five years. According to the DPR, in the years after coming into profit, the airport is expected to perform well as the profit will increase by six times by 2022. It will make a steady growth in the next five years till 2027. The profit figures have been extrapolated to Rs 179.34 crore in 2028. The profit will touch Rs 247.79 crore in 2030, according to the DPR.

Even though the company will earn some revenue before 2021, a lion's share of it will be spent on paying interests, which will prevent the project making profits till then.

The total revenue from the project in the year of inception has been predicted to be Rs 145.62 crore, which includes operational revenue of Rs 119.2 crore and Rs 25.7 crore as non-traffic revenue. This figure will touch Rs 244.49 crore in 2021, and Rs 635.53 crore in 2030, the report says.

Though the Cial was asked to submit the DPR by August this year, it has completed the work four months ahead of schedule, which has accelerated the pace of the project. :applause: The techno-economic feasibility study for the project has been completed and the Union ministry of civil aviation has already given in-principle approval for the project.

An area of 1276.03 acres has been acquired for the project and notification for additional 783 acres has been published.

"We require some 2,000 acres of land for the project, of which 1,276 acres have already been acquired. Another 783 acres of land too has to be acquired and the acquisition process is going on at a swift pace," Thulasidas said.
http://sp.m.timesofindia.com/PDATOI/articleshow/12990004.cms
 
#176 ·
BPCL to invest Rs. 170 crore in Kannur airport
The Bharat Petroleum Corporation Limited will invest Rs. 170 crore in the proposed Kannur International airport.

Minister for Ports K. Babu said in a statement here on Friday that the Corporation had communicated the decision of its director board to subscribe to 21 per cent of equity in the airport project to the State government. The decision followed talks the Chief Minister Oommen Chandy had with the Corporation authorities.

The Minister said that the State public sector units, Kerala Minerals and Metals Limited and the State Beverages Corporation, had already brought equity worth Rs. 5 crore each in the project while the State Financial Enterprises had invested Rs. 10 lakh.

Mr. Babu said that of the Rs. 784 proposed to be raised as equity for the project in the first phase, the government had subscribed to 26 per cent and government institutions to 23 per cent. Other institutions with government and private participation had subscribed to two per cent of the equity. The balance (49 per cent) would be offered to the public.

He said that the minimum subscription under the public offer had been reduced to 500 shares from 2001 shares, in deference to public demand. The face value of the shares would be Rs. 100 each. Steps had been taken for the public issue.

He said that the Cochin International Airport Limited had already submitted the detailed project report for the Kannur airport. Accordingly, the global tender for construction of the runway would be floated this month. The environmental impact assessment and public hearing would be completed in three months. The Union Ministry of Environment and Forests had cleared the terms of reference for the assessment in February.

Mr. Babu said that the first phase of the project was proposed to be completed in 2014. The inaugural flight would take off in 2015.
http://www.thehindu.com/news/cities/Kochi/article3384303.ece

BPCL to take 21 percent stake in Kannur airport
The Bharat Petroleum Corporation Limited will invest Rs. 170 crore in the proposed Kannur International airport.

Minister for Ports K. Babu said in a statement here on Friday that the Corporation had communicated the decision of its director board to subscribe to 21 per cent of equity in the airport project to the State government. The decision followed talks the Chief Minister Oommen Chandy had with the Corporation authorities.

The Minister said that the State public sector units, Kerala Minerals and Metals Limited and the State Beverages Corporation, had already brought equity worth Rs. 5 crore each in the project while the State Financial Enterprises had invested Rs. 10 lakh.

Mr. Babu said that of the Rs. 784 proposed to be raised as equity for the project in the first phase, the government had subscribed to 26 per cent and government institutions to 23 per cent. Other institutions with government and private participation had subscribed to two per cent of the equity. The balance (49 per cent) would be offered to the public.

He said that the minimum subscription under the public offer had been reduced to 500 shares from 2001 shares, in deference to public demand. The face value of the shares would be Rs. 100 each. Steps had been taken for the public issue.

He said that the Cochin International Airport Limited had already submitted the detailed project report for the Kannur airport. Accordingly, the global tender for construction of the runway would be floated this month. The environmental impact assessment and public hearing would be completed in three months. The Union Ministry of Environment and Forests had cleared the terms of reference for the assessment in February.

Mr. Babu said that the first phase of the project was proposed to be completed in 2014. The inaugural flight would take off in 2015.
http://www.punjabnewsline.com/content/bpcl-take-21-percent-stake-kannur-airport/43553
 
#177 ·
Kannur airport project: Wayanad, Coorg to gain prominence


KANNUR: Dreams around Kannur airport are taking shape in north Malabar. The boost to rail and road linkages that the airport project will entail has made the trade bodies buoyant.

According to Kannur MP K Sudhakaran infrastructure links between Mattanur and Thalassery hold the key to development in the region. "I am making all efforts to convince the authorities about its importance. The discussion about development projects in the region has turned alive once the government took up the airport project seriously," he said. \ The trade body in the region, North Malabar Chamber of Commerce (NMCC), believes that the development of infrastructure sector and the airport would hot up the tourism sector and benefit Kannur, Kasaragod and Wayanad. "The tourism sector is unexplored. The airport will result in arrival of foreign tourists to destinations such as Wayanad and Coorg," said K Vinod Narayanan, president of NMCC.

The export industry in the region will also find its way to a larger market through the Kannur airport. "The annual revenue of Kannur from exports is Rs 1,000 crore. Once the airport becomes a reality, the revenue will double in a couple of years," said C Jayachandran, industrialist and vicepresident of NMCC. Now major buyers prefer export houses in Mumbai and Delhi because of the poor connectivity of the region. "Time is a major factor in business and airport will help in addressing this," he said.

Like the private players, the government departments too are betting big on the airport project. "The airport will bring more investors in the hospitality sector to Malabar," said K Bhaskaran, deputy director of the department of tourism in Kannur. The department of tourism has already formulated many plans to facilitate private investors to set up hotels and resorts in the region.

"As a facilitator of the infrastructure development in the tourism sector, the department would call a meeting of the investors to develop properties," Bhaskaran said.

Though it would take a couple of years for the airport to become a reality, people are game for it already.
http://timesofindia.indiatimes.com/...g-to-gain-prominence/articleshow/12990034.cms
 
#178 ·
A big thanks to Aslesh for keeping this thread going. I brought me upto speed. For a Kannur native who's only now living here (I grew up in Bahrain), I've been keenly watching the "progress" of the airport.

As much as the dirty politics angers me, I'm at least glad the people planning the airport has kept future expansion plans in mind. Our worthless politicians only seem to care about doing things for as long as their stay in power instead doing what's good for the long run.

I just hope the Mattanur-Melechovva road gets widened enough to handle the traffic. I also hope the design of the airport is world-class with a Kerala touch, as supposed to looking like a bland AAI-designed airport.
 
#180 ·
Global tenders for Kannur airport runway to be floated this month

Fisheries and Ports Minister K. Babu has said that global tenders for the construction of runway for the proposed Kannur International Airport will be floated by the end of this month.

Inaugurating a function organised by the Fisheries Department here on Friday, the Minister, who is in charge of the airport project, said that the government has initiated steps to secure environmental clearance for constructing the runway as the Kannur International Airport Ltd. (KIAL) has submitted its project report for the runway development.

He also said that the second phase of land acquisition for taking over the remaining land identified for the development of the proposed airport would be under way soon. The government would have 26 per cent stake in the proposed airport project, which is expected to play a major role for the massive development of the northern parts of the State, he said adding that 23 per cent of the equity would be held by the government institutions such as the Kerala Minerals and Metals Ltd., Kerala State Industrial Development Corporation and the Kerala State Financial Development Corporation.

Stating that a decision to offer the remaining equity to the public, including the non-resident Indians (NRIs) would be taken soon, he announced that the government has received an offer from the NRIs to mobilise Rs. 175 crore for the airport project. The total project of has been raised from Rs. 1,000 crore to Rs. 1,400 crore, he added.

http://www.thehindu.com/news/cities/Kochi/article3408524.ece
 
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