Kerala budget revives Air Kerala project

Trivandrum - The project has been caught in turbulence ever since Chandy first mooted it during his first tenure as chief minister (2004-06).

The Kerala government has sought to revive its low-fare international airline project, Air Kerala, by earmarking Rs1 billion for the same in the state budget for 2016-17 fiscal.
Chief Minister Oommen Chandy, who presented the budget in the assembly on Friday, said that the amount would be spent for starting service to the Gulf region, if permission from the government of India is obtained.
The state government, which proposed the project in 2006 to make air travel affordable to the Non-Resident Keralites (NRKs) in the Middle East, is pinning its hope on the national civil aviation policy under the consideration of the federal government. The draft policy released in October last year favours scrapping of the 5/20 rule that bars Indian carriers from flying abroad until they complete five years of domestic service and have a fleet of 20 aircraft.
The project may take off if the rule is completely abolished. It also provides the option of retaining the rule as such or replaces it with Domestic Flying Credits (DFC).
The project has been caught in turbulence ever since Chandy first mooted it during his first tenure as chief minister (2004-06).
The project envisages to help Keralites who are fleeced by airline companies for travelling to their state from different Middle-East countries.
The budget, which is the last of the Congress-led United Democratic Front government, has no new schemes for the NRKs, who sustain the economy by contributing about 35 percent to the state gross domestic product (GDP).
The total outlay made for the Non-resident Keralites Affairs Department (NORKA) that addresses the development and welfare of NRKs is a mere Rs280 million. This includes Rs120 million for the rehabilitation of returned migrants, Rs50 million for Santhwana scheme (Rs.50 million) and Rs.30 million for NORKA business facilitation centre.
The chief minister said in his speech said that the government had increased the financial assistance for marriage, treatment and posthumous relief given under the scheme. He said that loan under the scheme will be disbursed to all eligible persons before February 29. The government has signed a memorandum of understanding (MoU) with banks in this regard.
The budget presented amidst protests and boycott by opposition Left Democratic Front (LDF) demanding his resignation over solar and bar bribery scams has laid a major focus on the development of the transport sector.
Chandy said that the Kannur International Airport built at a cost of Rs18.92 billion will soon be opened for international flights.
He said that Kannur will be the fourth airport in India with a runway of 4000 metres.
The other major transport initiatives include elevated expressway from Kararagod to Kovalam, multi-modal airport hub at Trivandrum, light metro systems in Calicut and Trivandrum and a suburban rail corridor. The budget, which proposes a host of schemes and projects touching all sections of the society without providing matching provisions to implement, has been dubbed by the opposition as an election gimmick.
The trade and industry has also termed the budget disappointing.
news@khaleejtimes.com

New projects and schemes
> Knowledge city at Trivandrum
> Feasibility study to set up elevated highway from Kasargod to Kovalam on the western side of national waterways
> High speed north-south rail corridor
> Cyber Park at Chenganoor in Aleppey district
> Infocity at Pala in Kottayam district
> Kerala Public Service Delivery Incubator
> Maharajas College at Ernakulam to be developed as first digital college in state
> Free rice to people living below poverty lines
> insurance scheme for beneficiaries of social-security pensions
> Kanivu scheme for the protection of lonely elderly, destitute and mentally ill with an initial outlay of Rs.1 billion.
> Two LED bulbs will be given to all homes in state for free.

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