Don't Re-introduce User's Fee in Cochin Airport

PRAVASI BANDHU WELFARE TRUST
(Regd. In India No. 325/IV/2001)
Post Box No. 940, Sharjah, UAE
Mobile: 00971-50-6467801
www.pravasibandhu.com
Email: kvshams@gmail.com

January 15, 2009

Sri V S Achudanandan

Chief Minister of Kerala

Thiruvanandapuram



Dear Sir,

Cochin International Airport Limited (CIAL) was incorporated as a Public Limited Company under the Companies Act, 1956 on 30 March 1994, with equity participation from the Government of Kerala, Industrialists, Financial Institutions, Airport Service Providers and the Public - majority of them are non resident Indians totalling 11,000 from 30 countries. Cochin International Airport Limited (CIAL) has become the First-of-its-kind airport developed under the PPP model.

In the 11 members board of directors there are four state ministers, one chief secretary of Kerala and five prominent non-resident Indian business men and a well experienced managing director.

Among NRI investors there are thousands of very small investors who invested Rs 10,000 their hardened money with expectation of reasonable return way back 1995 in this dream project. Unfortunately they had to wait 11 years to get the maiden dividend of 10% in 2006.

Where as the investors and other NRIs was penalised with Users Fee when Cochin International Airport started the operation in 1999 as back lash and punishment for venturing such unique project in Kerala. But, NRIs from all over the world agitated against User’s Fee, as a result the Airport Authorities compelled to withdraw the User’s Fee.

Again the proposal to re instate the User Fee presented in last board meeting by some greedy board members including NRIs with the behind the seen support of the government and some resident investors. We could realise that Board Member like Mr. M A Yousef Ali opposed the proposal and kept pending for the time being. But we realised that the government also want to introduce the User’s Fee again to get bumper dividend every year, because this one the very few companies giving dividend to the government investment even though they invested hundred of companies in Kerala.

Kerala Finance Minister Shri T M Thomas Issac, keep of talking about development of Kerala with financial participation of non-resident Indians.

When CIAL invite investment from NRIs they offered many sweet promises, when the project had completed the CIAL bite back the NRIs.

So, we request the CIAL and all the Board Members of CIAL and resident shareholders don’t be greedy, please do not reinstate Users Fee. You must realise that if it implemented NRIs, will not sit ideal. Kerala Finance minister has planned to develop Kerala with NRI financial participation, the decisions to reinstate User’s Fee will jeopardise such proposals.

Thank you,

Yours truly,

For Pravasi Bandhu Welfare Trust





K V SHAMSUDHEEN

Chairman