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