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HPCL to buy 11% stake in Kannur International Airport-news27022012


HPCL is planning to acquire 11% stake in Kannur International Airport Limited ( KIAL), a SPV formed with Kerala government for Rs55 crore.

According to reports, HPCL 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.

Kannur International Airport project is implemented on Public Private Partnership basis and on a Build Own Operate model. The Government of Kerala will own 26% share in the project, 23% will be owned by public sector undertakings, 2% with other institutions promoted by the Government and 49% with private individuals and institutions.

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.

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.

KIAL 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.
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