Kannur airport gets Rs.1,890-cr funding provision

The greenfield International Airport at Kannur, which is currently gearing up for commissioning and commercial operations by the end of this year, has recently secured a financing provision of Rs. 1,890cr. In this connection, the government has given 'go ahead' to increase the equity of the airport by Rs. 500cr. Under the existing equity-debt pattern, the equity portion is Rs. 1,000-cr and the debt portion is Rs. 892-cr through consortium of banks with Canara Bank as the lead partner. With this, the Kannur International Airport Ltd. (KIAL) can approach financial institutions for term loan requirement of Rs. 222.2cr. The infusion of equity was for increasing the length of the runway from the present 3,050 m to 3,400 m, said official sources, adding that the decision to increase the equity was taken at a meeting of the governing body of KIAL chaired by Chief Minister Pinarayi Vijayan recently.