Saudi prince eyes major stake in Kannur airport
K Rajan
KOZHIKODE, January 1: The Saudi prince-turned-tycoon, Alwaleed bin Abdul Aziz al Saud, is likely to pick up a major stake in the Rs 250-crore Kannur International airport venture which recently got the union government clearance. Chairman of Leela Venture Ltd and the promoter of the airport venture Krishan Nair, is trying to rope in the Saudi prince, sources said.The prince, who was in New Delhi last week looking for investment opportunities in here, was on record saying that he was keen to invest in infrastructure. In his discussions with prime minister IK Gujral and external affairs minister Salim Shervani, he said tourism, power and infrastructure were the key areas he was looking at for investing. Citycorp is likely to explore the investment opportunities for the prince. Krishnan Nair had held discussions with the prince highlighting the importance of developing international airports as part of improving the country's tourism sector. The Saudi prince, with a networth of over $ 12 billion, has
stakes in Canada-based hotel chain Four Seasons, besides in Citicorp, Newscorp, Apple, Disneyland, Paris and Donna Karan International, the sources said. The five-star hotels planned by Leela Group in Mumbai, Goa, New Delhi, Bangalore and Udaipur will be operated and marketed by Four Seasons. The prince's interest assumes importance in the wake of Centre's new aviation which allows a maximum foreign equity of 76 per cent in the new airport development proposals. Also, there is a clear move on the part of the civil aviation ministry to consider the airport projects on build-own-operate (BOO) basis, according to sources. The foreign inventors are also allowed to have even 100 per cent stake in the airport ventures with special permission. Meanwhile, the Kannur Airport Action Committee, chaired by chief minister E K Nayanar, has decided to speed up land acquisition procedures. Among those at the meeting were committee vice-chairman Krishnan Nair, Electricity Minister Pinarayi Vijayan and the Airports
Authority of India chairman. A special officer CK Ramachandran, presently the secretary to the chief minister, has been appointed. Krishnan Nair told The Financial Express that Joginder Singh, an aviation consultant with the Airport Management and Associates, had been given the task of preparing the techno-economic report for the project.According to the plan, the airport project was to be in the joint sector and that a joint venture company would be floated with state government holding its equity as land. Krishnan Nair also said that a consortium of investors would be formed in addition to mopping up a portion of the investment from Malayalee expatriates abroad. The airport initially would have a 10,000-foot-plus runway with further scope for expansion.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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