TRIVANDRUM, 10 July 2006 — Kerala’s Left Democratic Front (LDF) government wants to build a greenfield airport in the northern town of Cannanore by private companies on a BOT (Build-Own-Transfer) basis.
Chief Minister V.S. Achuthanandan called on the Prime Minister Manmohan Singh Saturday and submitted a detailed proposal.
The fourth international airport in the southern state has already received in-principle clearance from the federal government and Achuthanandan urged Manmohan to accord final clearance without delay.
“The joint secretary (civil aviation) said the matter is in the final stages of decision-making. It could be placed before the Cabinet for a formal decision. Kerala has now decided that the project would be best implemented on BOT basis,” Achuthanandan said.
According to reports from New Delhi, the hard core Marxists’ support for the BOT project was applauded by the Prime Minister’s Office as it is a powerful weapon to silence the left parties that prop up the minority government. The two are at odds over partnering with private companies for modernization of airports.
The previous Congress-led government cleared the project in private-public partnership on the Cochin airport model in which the state government is the single largest stakeholder. (The company’s board is chaired by the chief minister and the government appoints its managing director time-to-time.)
The previous government had also last year fixed a debt-equity ratio of 70:30 for the 9.3-billion-rupee project. The government was to hold 26 percent shares while seeking 1.2-billion-rupee federal infrastructure viability gap funding.
Some 400 acres of land have already been acquired for the project.
The project, mooted in 1998, was put on hold after aviation authorities raised doubts over feasibility because of its proximity to Calicut and Mangalore airports.
Now the government wants to revive it as the nearby Bekal is being developed as an international beach resort and Ezhimala Naval Academy, where foreign cadets are to be trained, has been commissioned. Besides, Cannanore is among the eight best textile centers in India.
Leading a seven-member Cabinet team, the chief minister met Manmohan with a wish list of big projects and aid package. The state expects a better deal from the United Progressive Alliance government since all the 19 lawmakers belonging to the LDF lend support to the government from outside.
The prime minister has agreed to visit the state next month, after the monsoon session of Parliament. He is expected to make major announcements then.
