Air Kerala : NRKs can buy share for Rs 10,000

In a move to attract Non-Resident Keralaites (NRKs) to invest in the state, the honourable Chief Minister of Kerala Shri Oommen Chandy said the minimum share an investor can buy in the Air Kerala project would be Rs 10,000.

The value of share is being kept low to ensure participation of ordinary Non Resident Keralites (NRKs), he said. The first phase will be launched with an initial investment of Rs 200 crore. The project would follow the CIAL model, in which the State government would hold 26 per cent while the public including NRKs and public sector institutions would hold the rest.

"Prime Minister Manmohan Singh was in favour of granting exemption to Air Kerala from the norms stipulating that an airline should have a fleet of 20 aircraft and five years’ experience in domestic operations before it can fly to international destinations," Chandy said. 

Aircrafts will be taken on loan for the project.

Ernst and Young has been entrusted with preparation of a revised project document.