Kannur Airport Project - Where is the Government's Commitment to the Common Man???
Construction of Kannur International Airport Limited (KIAL) is now getting under way with the foundation stone-laying ceremony done in November 2010. Government is planning to mobilize capital for this project through share allotment to various public sector units, co-operatives, and the public. Total outlay for this project is estimated at Rs 10 billion out of which 5 billion will be raised through equity, and the balance thru debt. In the proposed equity structure, government is supposed to hold 51% stake with the public holding the rest.Now this project is in the eye of a storm over the share allotment issue. The government, professedly proletarian, is taking a pro-rich stance in the allotment of shares. The Industries Secretary, Mr. T Balakrishnan, patently pro-rich considering the record of his statements in the recent past, has stated at a meeting in New Delhi that only the rich invest in the Airport project. The Board of Directors of KIAL has come out with the norms regarding the equity allotment according to which the minimum quantity to be applied for is 2001 shares. Each share has a face value of Rs. 100. This means that a minimum of 2 lack rupees plus is required for public investors to apply for shares. Definitely, coming this from the government of the working -class, is too much to take.
P C George MLA has come out strongly against this, and appealed to the government to ensure transparency in the allotment of equity in the KIAL Project. He said at a press conference that a move is afoot at higher levels to dish out shares among a few 'big sharks'. He also criticized the Board decision to issue 16% of the total equity to the Leela Group companies. Chief Minister is the chairman of the KIAL Board. He stated that the last date for subscription is kept a secret so that the Board can allot shares to the 'big sharks' and their 'benamis' as it pleased.
There is a deafening silence on the part of the government regarding allotment to the NRI community. Ministers and other public servants never miss an opportunity to exhort to the NRIs to invest in the state. When the government comes out with some dud projects like INKEL, ministers and bureaucrats visit Gulf countries to raise subscriptions. When there is a profitable venture like KIAL (going by the CIAL experience), NRIs are given the go by.
One wishes that the government's commitment to the working-class is not mere lip service. An occasion like this is a rare opportunity for the government to help the common man of kerala, NRI or resident, to create wealth for him thru investments in public projects. Hope the government will reconsider its decision.