Why not!!!^^
BPCL too joining! Can both take stake together?
Sad low in central govt politics, petroleum minister forcing hpcl to invest in an unrelated industry :bash: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.
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...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:
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.
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.
You will have to wait, Navi Mumbai airport renders came in March 2012 after the induction of thread for the particular project in 2007.:fiddle:
This thread is useless without any photographs
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.