Sunday 17th of December 2017

Kerala govt. and CIAL to form SPV for inland waterways development

Category: National Published: Tuesday, 19 September 2017

 

Kochi: Chief Minister informed that Kerala Govt. and the Cochin International Airport Ltd.(CIAL) has decided to jointly create a special purpose vehicle to develop the inland waterways in the State, connecting Kovalam with Kasargod. CIAL and Kerala Govt. will each hold 49% stake in the planned joint venture company, and the remaining 2% of shares will be made available for small investors.

The project aims to ease large scale goods movement by inland waterways. Boat jetties, hotels and shopping centres will be constructed in main tourist centres on the planned project route. Also there are plans to operate tourism packages. The project will pave way for a quantum leap in the tourism sector of the State. It is targeted to be completed by 2020. The announcement was made in the 23rd annual meeting of the shareholders of CIAL.

CIAL posted an impressive growth in 2016-17. Together with the Cochin Duty Free, a combined revenue of ₹ 669.09 Cr was amassed in this period. The profit earned for the period is ₹179.45 Cr. During the last financial year 89.4 lakh passengers travelled through its doors. Compared to the last year, this amounts to a total increase of 15.06% in volume, with a 25.99% increase in domestic passengers. The company have been paying out cash dividends uninterruptedly since 2003-04. Along with this year's share, stockholders would have got a total 203% in dividends.

A new international terminal came into operation during the last financial year. A 4.3 km long four lane road was also constructed from the national highway to the airport. It also became world's first airport to be totally reliant on solar energy for operations, and has increased the total energy capacity to 23.2 MW. Also the construction of a 5.9 MW solar plant above the canal located to the south of the airport is nearing completion.

CIAL is targeting to raise the total capacity to 40MW in this financial year. Cochin International Airport plays an important role both economically and socially. It employs 7500 people directly and supports 10000 other jobs indirectly, and has emerged as a significant employer in the State. CM also informed that the director board has recommended a 25% increase in dividends for its share holders in the year 2016-17.