You started off as a district collector and have been in charge of Oushadhi, Spices Board, and Roads and Bridges Development Corporation of Kerala (RBDCK). However, you got credit only for the stint with Kochi airport...
I began as the sub-collector of Muvattupuzha. After four years, I became the managing director of Oushadhi. That period was one of my best because I learnt Ayurveda and built a new factory on the Thrissur-Palakkad highway at Kuttanellur. We turned the company profitable and constructed a new factory. This is where I learnt management techniques and how to handle people, which was a great leveller. At Oushadhi, I realised that things don’t move just by giving orders... you need to convince people and carry them along. This experience laid the foundation for my career. As a sub-collector, you give orders and ensure implementation, but at Oushadhi, I learnt the importance of collaboration.
When I moved to RBDCK, we built 65 railway overbridges, thanks to the support of O Rajagopal, the then minister of state for railways. We also proposed the Express Highway, a Rs 9,000-crore project, but faced significant opposition from leaders like V S Achuthanandan and M P Veerendrakumar, which stalled the project. Had it been implemented, there would be no need for the proposed SilverLine project. At the Spices Board, we introduced e-auction for cardamom and established Spices Parks. We opened seven Spice Parks across India and established spice testing labs at all seaports to ensure product purity before shipping. While I’ve done significant work in these organisations, massive projects like Kochi airport tend to overshadow other achievements (smiles).
Can you describe how the Kochi airport was conceived and executed?
In 1991, I was posted as the Ernakulam collector by the then chief minister K Karunakaran. During a meeting in Delhi called by Madhavrao Scindia, the then Union civil aviation minister, the discussion centred on expanding the Navy airport at Willingdon Island. The runway was too short, and with Indian Airlines transitioning from Boeing 737-200 to Airbus 320, Kochi risked being removed from the aviation map. The estimated cost to expand the runway was Rs 80 crore, which no one was willing to fund.
During the meeting, I was asked if Kerala could find a new location for an airport. I agreed to look into it, and upon returning, I instructed my tahsildars to scout for land. After some initial rejections, we identified suitable land in Nedumbassery. However, the Union government stated they had no funds for the project but could offer technical support.
I proposed involving stakeholders as partners in the project. My idea was to collect Rs 5,000 from 20 lakh Malayalis in the Middle East to raise sufficient funds. Although initially ridiculed, I persisted. Many said behind my back that it is an idiotic project by idiot Kurian. Karunakaran was also initially sceptical, but after consulting with experts and forming the Kochi International Airport Society (KIAS), the idea began to take shape.
Despite initial fundraising challenges, we collected Rs 5 crore. With the support of ministers and businessmen, we transitioned KIAS into Cochin International Airport Ltd and registered it as a company. We prepared a Rs 162-crore project, with Rs 98 crore as a loan from HUDCO and Rs 64 crore as equity. Although the state government was initially reluctant to provide a guarantee, persistent efforts and support from key ministers led to the approval.
After securing the HUDCO loan, we faced severe fund crunches but managed to avoid delays in payments to contractors. We raised funds creatively through deposits and equity investments from various stakeholders, including Federal Bank, BPCL, and Air India. The project was completed at an expense of Rs 305 crore. This journey from conception to execution of the Cochin International Airport showcased the power of innovative thinking, stakeholder involvement, and relentless perseverance.
How did you manage to settle the land acquisition, overcoming protests?
We acquired land from 3,894 people, holding 42 rounds of discussions. The land, spread over Angamaly municipality and three panchayats, had 820 houses. We offered lucrative compensation: Rs 1,500 per cent of paddy fields (market rate: Rs 100), and Rs 8,000 for residential property (market rate: Rs 1,000), and six cents of land for free. We developed a community on 56 acres with basic amenities and provided jobs to 820 families. The package, approved by the then chief minister E K Nayanar, was acknowledged by the World Bank as one of the best rehabilitation packages. We also removed four temples and two churches from the acquired land. There were no issues with the temples since they were family-owned. We overcame initial protests from the residents and provided job opportunities to around 40,000 people. Today, the area, known as ‘Aaru Cent Colony’, has seen significant development, with land value increasing to at least Rs 5 lakh per cent. Approximately 15,000 people work within the airport premises, and another 25,000 are employed in cargo and hotels outside the airport.
Are you in favour of CIAL going public and listing?
Personally, I believe CIAL should list and grow into sectors like tourism and power. Kerala urgently needs power, and CIAL Infrastructure Limited, which made the airport 100% solar-powered, should expand into the power sector. Currently, the airport generates only 30% of its capacity, around 1,200 MW, despite having the potential to produce 4,000 MW. The power sector is Kerala’s pressing need. We’ve proposed setting up solar panels on rooftops and pumped storage in Idukki and Banasura Sagar projects. Unfortunately, CIAL is only undertaking minor projects on its properties. I even laughed when I read about CIAL setting up four fast electric vehicle charging stations, when 82 stations have been operating since 2016. The lack of risk-taking is a significant problem. CIAL should have entered the power or hotel sector. The waterway concept, entrusted to a subsidiary company, has seen no progress in three years. We need to develop waterways and promote leisure travel, like a trip on the River Nile.
What happened to the Kannur airport?
To begin with, the location wasn’t ideal. You spent Rs 2,000 crore compared to Rs 300 crore for Kochi airport. With more equity and loans, you have higher interest payments. There aren’t many flights operating either. My former colleague Dinesh Kumar, the MD of the airport, explained that the crisis was due to the reluctance of foreign airlines to operate there. Had there been enough passengers, domestic airlines like IndiGo and Air India could fly from Kannur, as there are no restrictions for them. People will trust it more if the Government of India designates it as a port of call. Look at Kochi airport... it operated for two years with only Air India flights before being designated a port of call.
What’s your take on the proposed Erumeli airport?
It isn’t required. It’s too close to Kochi and Thiruvananthapuram. Considering the position of Kannur airport, which was inaugurated six years ago and has incurred losses because of high costs and expensive land acquisition, another airport in Erumeli doesn’t make sense.
Karipur is a tabletop airport. In such circumstances, shouldn’t Kannur airport get a preference?
Yes, Kannur should get a preference. It’s a marketing issue. Location is crucial. If I were from Malappuram, I would prefer to land in Karipur, even if it is a tabletop airport. Land acquisition and widening should have been done in Karipur several years ago. It’s a dangerous airport to be in, and Kannur has the advantage. However, they haven’t capitalised on the situation.
You had a good relationship with all the chief ministers. How did you manage that?
I had no vested interests. I had no relatives in the organisation, and I didn’t own any land in Aluva. I understood the project’s dynamics and alignment. I could have bought land or gotten my relatives to invest, but I didn’t. That would have been unethical. My lack of personal interest allowed me to deliver a profitable project to the city. CIAL has given Rs 315 crore in dividends alone. M A Yusuffali’s stake has grown from 1% to 20%, while I own just 9,000 shares. My neutrality and dedication to the project helped me build cordial relationships with all the chief ministers.
What should be CIAL’s growth trajectory?
CIAL needs to expand further. Building a secondary runway is crucial. The 2019 recarpeting highlighted the need for a secondary runway to avoid future closures. We require 150 acres, which can be acquired from the adjacent paddy fields left barren. CIAL is profitable, with a profit of `400 crore expected this year. Buying 300-350 acres in the next two years and planning for a secondary runway is essential. I had told the current MD that the priority needs to be the acquisition of this parcel of land. This will avoid disruptions during the next recarpeting, in 2028.
Unfortunately, the focus is on short-term gains and dividends, rather than long-term development. The PPP model’s limitation is that stakeholders prioritise personal gains over project development. The CIAL directors will not allow this since they are interested only in drawing the dividends. They were given 35% last year and this time they will ask for 50%. Of the Rs 400 crore (expected profit), Rs 200 crore is the users’ fee that has been collected promising the construction of a runway in five years. Terminal II was built spending Rs 8 crore in 1992. However, the refurbishment done recently cost Rs 80 crore. The absence of a secondary runway will lead to a crisis in five to seven years.
Why hasn’t the secondary runway been built yet?
Having two runways offers several benefits. In case of an accident, flights can be diverted to the secondary runway, avoiding disruptions. Dual runways also enable simultaneous take-off and landing, increasing flight movement efficiency. I initially rejected Yusuffali’s proposal for a business jet terminal, but he implemented it after I left CIAL. We had planned a facility for passengers who arrive by late night flights and depart by early morning flights to freshen up at a minimal cost of Rs 400.
However, the business jet terminal was built with a total expenditure of Rs 80 crore. This diverged from our initial plan to expand the domestic terminal.
Which is better, an airport managed by a private investor or the PPP model?
From my experience, I believe that private management of airports is not beneficial for the common man. Adani Group took over the Thiruvananthapuram airport, promising to pay the Government of India Rs 140 per passenger. Now, they’ve increased the user fee to Rs 506 and Rs 1,069 for domestic and international passengers, respectively. This is a burden on passengers. The Airport Economic Regulatory Authority allows an 18% return on net asset value, but airports are charging user fees to compensate for their expenses, cheating the common man. Oommen Chandy had directed to stop collecting user fees, saying it was unfair to charge passengers for the payment of dividends.
You worked with several chief ministers. Who did you like the most?
I enjoyed working with Oommen Chandy the most. He was intelligent and had an incredible memory. We IAS officers don’t have half of his wisdom. We might have had different political opinions, but as a person, he was intelligent, quick, and subtle. He used to remind us of the tasks we had been assigned. He is the best man-manager and bold decision-maker that I have seen. We came up with the solar project at the airport in 2013 when the Saritha issue was at its peak. I met Oommen Chandy in his office and proposed the idea of a 100% solar-powered airport. I was hesitant because of the ongoing case, but he told me to go ahead. When I asked him again, he said it was politics and would be proven wrong. No one else had such courage.
There’s an allegation the airport was built on a floodplain, and during the 2018 flood, the airport was closed for weeks...
When we talk about floodplains, we have 44 rivers, each with its own floodplain. We can’t avoid building on floodplains entirely, so we had to choose a suitable location. The airport’s location was apt. Problems like the 2018 flood won’t happen again. We’ve installed an automatic pumping system, spending Rs 10 crore, to avoid waterlogging. We’ve also widened the Chengal canal. The 2018 flood was man-made, a fact we might deny but can’t ignore. The dam shutters were opened simultaneously, when the plains were already flooded. Now, we have the rule curve, to avoid floods.
Do you think young IAS officers lack the drive to take risks?
The new generation of officers are not ready to take risks. I feel many are scared. We are fortunate to be in the IAS. There are many intelligent officers around us. We have security, staff, and a decent salary, so we should do something good for the people. If you prioritise money, you should join the private sector. IAS and IPS officers need to have a service-oriented mentality. The new officers don’t have the drive to think out of the box an come up with innovative ideas. We have set models here, but no one is following our footsteps. If you have commitment to the people, there will be no corruption.
How is your relationship with Chief Minister Pinarayi Vijayan?
It’s a great relationship. He is excellent at making decisions and always supports us once he is convinced. That is a very good quality.
What about his second term?
I don’t know what happened. We all had high expectations as he came back with a thumping majority. I expected Pinarayi Vijayan to do wonders with his significant majority, perhaps transforming Kerala into a city like Singapore. I always talk to him about strengthening tourism through better roads. He is a tough guy with a great vision, but in this last year of the term, he seems to have lost momentum. Now, it’s like a switch that has been turned off. It’s not just a problem at the ministerial level... to some extent, bureaucrats are also involved. A chief minister can’t know about everything under the sun. We need to inform him about the projects and brief him regularly.
There is a push for road development from the state government. Is it enough?
No, the development is insufficient. In the road sector, most of the work is implemented by the Centre. What role does the Kerala government play? The state government should develop state highways into six-lane roads. Instead of just completing road renovation work, it’s better to acquire land for state highway expansion. After two-three years, when major projects by the Centre conclude, we can use their funds to develop these road projects. Most Malayalis prefer to travel by car with their family rather than depending on public transportation. In 20 years, we could become a city like Singapore. In this context, the K-Rail project is not a good suggestion.
You still have a vigilance case connected to CIAL...
Until 2006, anyone could buy shares in CIAL. An NRI businessman’s share value increased from less than a crore to Rs 6 crore by 2006. The allegation was that I had given shares to an employee named Sebastian, but I didn’t know him. Moreover, it’s the board that makes decisions, not I alone. I can’t just randomly give shares to anyone (laughs).
You come from an agricultural family. When you were with the Spices Board, you would travel to Kuttanad every weekend to tend to your farm...
Yes, I still do. I cultivate bananas, coconut, and cocoa in my farmland. My father was a lawyer, but he was also a farmer. I still own around 30 acres. I was one of the pioneers in cocoa farming in the area but the 2018 flood destroyed my farm. The land was under water for two months, which was a difficult time for me.
Are you happy with your career? You could have taken up Union government assignments, shouldering greater responsibilities...
I am extremely happy. I will be remembered for this airport project. While I could have climbed the ranks in the Indian bureaucracy, I made some compromises. Had I moved to Delhi, it would have affected my children’s education. Also, I don’t think I could have survived the Delhi environment. I may not be wealthy, but I’m a happy man, knowing that I did something meaningful for society.
TNIE team: Kiran Prakash, Rajesh Abraham, Rajesh Ravi, Manoj Viswanathan, Arun M, Aishwarya Prabhakaran
T P Sooraj (photos),
Pranav V P (video)