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Air Kerala to raise Rs 200 cr as initial capital

While 26% shares will be held by the state govt, CIAL and PSUs, the remaining 74% will be held by shareholders

Press Trust of India  |  Kochi 

The proposed state-run airline Air Kerala plans to raise Rs 200 crore through equity as initial capital, Cochin International Airport Ltd (CIAL) Managing Director V J Kurien said today.

While 26% shares will be held by the state government, CIAL and public sector undertakings, the remaining 74% will be held by shareholders.

This was decided by board of directors of Air Kerala, which met here under the chairmanship of Chief Minister Oommen Chandy.

The strength of the board has been raised to eight by co-opting four new members into the board - Industries Minister P K Kunhalikutty, Finance Minister K M Mani, Information Minister K C Joseph and Fisheries Minister K Babu.

The four members already in the board were the Chief Minister, prominent businessmen Yusuf Ali and C V Jacob, and CIAL's Kurien.

"The minimum investment is Rs 10,000 and we are looking at 2,00,000 Keralites to participate. Our aim is to make it the largest shareholding company," Kurien said.

Discussions had been held with project consultants Ernst & Young, who had prepared the project report in 2006, to update it within three and half months, he said.

Minister K Babu told PTI the government would take all steps to get clearances from the Centre.

The Detailed Project Report (DPR) will be updated, he said.

Kerala has sought speedy approval for launching state-run airline Air Kerala that would primarily cater to Keralites living in the Gulf region.

Kerala has sought exemptions from rules that require at least five-year experience in domestic services and a minimum of 20 aircraft to start services.

These norms had been relaxed for Air India Express holding, a subsidiary of Air India, Chandy said, adding that the same relaxation should be given to Air Kerala.

First Published: Fri, September 14 2012. 16:50 IST