KIAL signs loan pact with banks.

Kannur International Airport Limited (KIAL) on Wednesday signed an agreement with a consortium of bankers for a loan of Rs. 892 crore for the Rs. 1,892-crore airport project.

Of the Rs. 892 crore, Canara Bank is providing Rs. 692 crore, South Indian Bank Rs.110 crore and Federal Bank Rs. 90 crore. The remaining Rs. 1,000 crore needed for the project is equity from the State (Rs. 350 crore), public sector organisations (Rs. 230 crore), Airports Authority of India (Rs. 260 crore) and Rs. 160 crore from the private sector.

The agreement was signed by KIAL Managing Director G. Chandramouli and Sunil P.L., Chief Manager, Canara Bank; G.N. Pradeep, AGM, South Indian Bank, and V.C. Santosh Kumar, AGM, Federal Bank, in the presence of Minister for Ports K. Babu.

Speaking after the signing of the agreement, Mr. Babu expressed the hope that the first flight would land in Kannur international airport as planned in December this year and that the commercial flight operations could be kicked off in May 2016 despite construction getting affected for 70 days. The Minister said KIAL could not accommodate all banks that came forward in the loan agreement and could not provide the equity demanded by them.

'We did not have to knock at the doors of the banks for loan. The interest shown by the banks shows the feasibility of the project.'? Mr. Babu said Canara Bank alone was interested in providing Rs. 892 crore. Pointing out that the equity structure was altered as public sector organisations came forward, the Minister said the agreement with the AAI would be signed most probably on June 5 in the capital. Fifty-five per cent of the runway work and 35 per cent of the terminal build ing work were over, he said.

General Manager, Canara Bank, B.K. Bajaj; General Manager, Federal Bank, K. A. Varghese; Deputy General Manager, South Indian Bank, K.S. Satheesh Kumar, and General Manager and Circle Head, Canara Bank, U. Ramesh Kumar, spoke.


THE HINDU