The Airports Authority of India (AAI) has come forward to subscribe to the equity in the Kannur airport project, Minister for Excise and Ports K. Babu said here on Monday.
Talking to the media after conferences on development of the airports in the State, the Minister said that the authority would subscribe to 10 to 11 per cent of the equity subject to clearance of its Director Board.
The consultancy for the project had been awarded to the authority, and it was expected to complete the project report by November.
He said Kinfra would transfer 516 acres acquired for the airport shortly to the government so that it could be transferred to Kannur International Airport Limited.
Its value would be treated as equity of the State government in the project (26 per cent). In addition, Kinfra would give 730 acres on lease to the airport company after getting Cabinet clearance.
Mr. Babu said Air India had agreed to operate a 40-seater flight connecting Thiruvananthapuram, Kochi, and Kozhikode. The State government would provide tax concession for fuel to be used for this flight. The service would start during Onam.
He said Additional Chief Secretary T. Balakrishnan and Thiruvananthapuram Collector P.M. Francis had been asked to modify the rehabilitation package for the additional area to be acquired for developing the Thiruvananthapuram airport.
About 500 families were to be moved out and they would be resettled in flats on a 15-acre plot at Muttathara. Those not taking the flat would be given the cost of the flat as additional compensation. About 1.5 acres belonging to the district panchayat farm would be taken over and an alternate site would be found for the farm.
The Minister said 157 acres needed for the Karipur (Kozhikode) airport would be handed over to the airport authorities in three months, eliminating delays in land acquisition.
About 20 acres in the area had been earmarked for resettlement of the evictees numbering 276. The Collector would convene a meeting soon to sort out outstanding issues.