//Air Kerala capital pegged at Rs.2 bn

Air Kerala capital pegged at Rs.2 bn

Thiruvananthapuram,Kerala, March 15 : The Kerala government’s proposed airline – Air Kerala – will have a share capital of Rs.2 billion ($45 million).

This was decided at the airline’s first board meeting held here Wednesday under the chairmanship of Kerala Chief Minister Oommen Chandy.

Of the Rs.2 billion, Rs.1.4 billion will be open to the public for subscription, said a statement issued after the meeting.

"To begin with, 250,000 people would be given shares to the tune of Rs.5,000 to Rs.10,000," said board member M.A. Yousuf Ali, a businessman from Kerala based in the Middle East.

"At a later stage, the number of shareholders will be increased to one million."

Kerala is now awaiting the relaxation of some rules from the central government to go ahead with the proposed airline.