Thiruvananthapuram 07-02-2012: One of the major initiatives of this Government, a flagship programme to be precise, the Kannur airport is turning out to be a reality with the signing of the agreement in this regard.

The first phase of the project would be completed in 2014. As per the agreement 645 acres of land comes under the possession of Kannur International Airport Limited (KIAL).

Kerala Industrial Infrastructure Development Corporation (KINFRA) has been named the nodal agency for acquiring the land needed for the airport. Loan will be taken from banks to acquire the land and the Government would stand guarantee to that. A Government order regarding the same has been issued.

The pact was inked between the State Government, KINFRA and the Consortium of Banks. By signing the agreement the State gets 26 % of the equity as the value of the land being handed over to KIAL. KIAL would get 453 acres valued at Rs.122 crore as per the agreement.

The Government had already handed over 192 acres valued at Rs.8 crore to KIAL. KINFRA had taken Rs.255 crore as loan from various banks for acquiring 1,085 acres of land for the airport project.

Rs.500 crore is being collected in the initial phase. The 23 per cent of the equity will be given to the public sector companies. State undertakings KSBC, KMML, and KSIE had already purchased the shares. The State government-promoted companies like CIAL and INKEL will get 2.5 per cent of the equity. The 49 per cent of equity is for the private sector.

Tender will be invited in April to start the construction work of runways. CESS has been entrusted to carry out environmental study regarding this.

It is most probable that the first flight would land in Kannur airport by 2015.