The CIAL model and the visionary behind it - VJ Kurian IAS

Created on 2021-06-19 07:09

Published on 2021-06-19 10:27

Background

A young IAS officer, just nine years into service, was tasked with building a new airport. That assignment marked the beginning of Cochin International Airport and the dawn of PPP airports in India.

The southern Indian port city of Cochin—known as the Queen of the Arabian Sea—has been on the world map for centuries. From the 1500s, ships from Asia and Europe docked here, drawn by Kerala’s famed spice trade.

By the mid-1980s, demand for a new airport had become urgent. Flights were operating from the Wellington Island airport, built by the British in 1936 and run by the Indian Navy. While the Navy allowed civilian use, the facility could not meet the growing demand for air services. The Gulf boom and the large-scale migration of Keralites further catalyzed this need.

Expanding Wellington Island airport was not feasible—it was built on a reclaimed island, owned by the port trust, and restricted by naval operations. The government therefore looked for a new site. The district collector at the time, V.J. Kurian, was tasked with identifying a location. This marked the start of “the airport man’s” journey with Cochin Airport.

Kurian identified a parcel of land in Nedumbassery, on the outskirts of Cochin. While approvals came through, financial constraints meant the Airports Authority would not invest, as was the norm. Kurian turned this roadblock into an opportunity—he conceived of an airport funded by joint participation from passengers, service providers, financial institutions, and the government. This pioneering idea gave India its first greenfield airport under a public-private partnership. CIAL (Cochin International Airport Ltd.) set the model that was later replicated at Delhi, Mumbai, Bangalore, and Hyderabad.

In its early days, CIAL faced two challenges: raising equity and acquiring land. Contributions came from across society—from blue-collar workers in the Gulf to millionaire businessmen. With support from the Government of Kerala and financial institutions, CIAL eventually raised the capital.

On the land front, 1,253 acres were required, owned by 3,824 landowners, including 822 resident families. Land acquisition in Kerala has always been fraught, yet CIAL achieved it on remarkably ethical terms.

CIAL showed the world how an infrastructure project could be both a financial and a social success.

Coming to the Present

Since commencing operations in 1999, Cochin International Airport has transformed the economic and social landscape of central Kerala and the city of Cochin. It has become a vital gateway to God’s Own Country.

An entrepreneurial bureaucrat, Kurian envisioned a value-for-money airport—focused on essentials, not record-breaking extravagance. The airport was built at a frugal cost of just INR 300 crores, including land.

Today, CIAL stands decorated with accolades: the world’s first fully solar-powered airport, a UN Champions of the Earth awardee, one of the busiest airports in India, and consistently profitable for two decades.

What sets CIAL apart is its commitment to shareholders, the community, and employees.

• <p>The 822 displaced families were given an unparalleled rehabilitation package: market-value compensation, six cents of land free of cost, priority for unskilled jobs, and guaranteed employment for one family member (including in the airport’s prepaid taxi fleet).</p>
• <p>Shareholders have consistently benefitted—CIAL has declared dividends every year since FY2004, with cumulative payouts crossing 282% by FY2020.</p>

Kurian’s solar power project stands as another marker of vision. It cut utility costs, generated surplus power for the grid, and reduced the airport’s carbon footprint. The UN estimates CIAL’s solar panels will avoid ~300,000 metric tons of emissions—equivalent to planting three million trees or avoiding 1.2 billion kilometers of driving.

Kurian led the airport for 19 years, across three terms, until his recent retirement. He not only built a unique airport but managed it even better. His leadership, and CIAL’s success, have inspired the global aviation community.

Here’s saluting his efforts—and a reminder that airports can be both commercially viable and socially responsible.