Success of CIAL model emphasizes relevance of PPP model in airport infrastructure development:Kerala CM

 Kerala Chief Minister Pinarayi Vijayan on Saturday said big projects like building and maintaining airports can be effectively carried out under the aegis of the state government and the success of CIAL model emphasizes the relevance of Public Private Participation in Airport infrastructure development.

He was addressing the 26th Annual General Meeting (AGM) of the shareholders of Cochin International Airport Ltd (CIAL) which was held through an online platform. As part of the deliberations, the AGM endorsed the proposal of the board of directors to award a 27 per cent dividend to the shareholders for financial year 2019-20.

"It is a misapprehension that complex projects like development of airport infrastructure have to be fully entrusted with the private sector.CIAL re-scripted it,"said the CM. 

This PPP venture demonstrated that the participation of the Government in such projects too could be effective in delivering professionalism and beneficial to the people," Vijayan said.

His comments come in the wake of the state assembly passing an 'unanimous resolution' last month demanding the withdrawal of the Union Cabinet's decision to lease out the international airport at Thiruvanathapuram to Adani Enterprises LTD. He said infrastructure development projects are implemented by acquiring the land and mind of the common men.

"They ought not to be privatized.The CIAL model is inclusive.It addresses the issues of the people too,"added the CM.

When this board of directors took charge in 2016, there were 7,000 people working at the airport premises.The number has grown to 12,000 in March 2020 and it is growing," the Chief Minister said.

Vijayan said CIAL has invested around Rs 2,000 crore in the capacity-enhancement projects of the airport and still not collecting user development fee from the passenger.

Noting that the total installed capacity of solar power plants at the airport has also been enhanced during this period, he said it was 15.5 MWp and 25 MWp was added during this period.CIAL which has an investor base of 19,000 shareholders from 30 countries has been giving dividend unfailingly since FY 2003-04 and this year, the total dividend payout has touched 282 per cent.

The company registered a turnover of Rs 655.05 crore in FY 2019-20 with a profit of Rs 204.05 crore.This is the first time that CIALs profit is touching Rs 200 crore.

The state government and its PSUs together enjoy 34.15 per cent stake in CIAL and have got Rs 368.46 per cent as dividend so far, the company said.

(Image Credits:PTI)