Airport privatisation: Kerala seeks approval for SPV or FRR

Kerala has presented its decision at a meeting of Empowered Group of Secretaries chaired by the CEO of the NITI Aayog in the first week of December.

Published: 12th December 2018 06:57 AM  |   Last Updated: 12th December 2018 06:57 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: The state government sought the permission to form a special purpose vehicle or First Right of Refusal (FRR), a contractual right that gives the state the option to enter a business transaction, if the Centre moves ahead with the privatisation of Trivandrum airport. 

Placing a statement on the proposal to form an SPV in connection with the Trivandrum airport privatisation under Rule 300, the Chief Minister said in 2003, the then Union Civil Aviation Ministry secretary had given an assurance to the state government the Ministry would consider the state to be made a part of the SPV in the event of privatisation of the airport. 

He had also assured the Ministry would consider providing stakes proportional to the value of the land the state acquired for the project. So the Centre should be ready to form an SPV in association with the state, protecting the interest of the state in the business. 

Or if the state is forced to take part in the auction to be held as part of the privatisation, it should be provided the FRR, which will help the state win the auction and its expertise on running Cochin International Airport or setting up Kannur International Airport can be used for running Trivandrum airport, he said. 

Kerala has presented its decision at a meeting of Empowered Group of Secretaries chaired by the CEO of the NITI Aayog in the first week of December. The Chief Secretary and the Transportation Secretary have also made a presentation before the officers of the Empowered Group of Secretaries, in which the history of the airport and the details of the land given for the project by the erstwhile Travancore Maharaja and the state government in various times were included. 

On the proposal to form an SPV in connection with the Trivandrum airport privatisation under Rule 300, the Chief Minister said in 2003, the then Union Civil Aviation Ministry secretary had given an assurance that  it would consider the state to be made a part of the SPV

Stay up to date on all the latest Thiruvananthapuram news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp