The board, which met here under the charimanship of Chief Minister AK Antony, has recommended the name of its first managing director VJ Kurian who presently holds charge of the Roads and Bridges Corporation. The matter would now go the State Cabinet for clearance.
The present managing director Babu Rajeev's term of office ends on January 31. Another name that had been doing the rounds was that of Kerala Horticulture Development programme director Viswambharan.
The board also decided to allocate 26 per cent stake to HUDCO whom it owes Rs 138 crore taken as loan and with the interest due the amount has grown to almost Rs 200 crore. Earlier, the board had rejected the Hudco proposal to convert part of its loan into equity worth 26 per cent and offered it only 24 per cent. However, after talks with HUDCO, the board on Monday agreed to the Hudco proposal.
The company has an authorised paid-up capital of Rs 200 crore, of which the state government has paid up its Rs 52 crore for its 26 per cent equity.
Sources said Hudco had also agreed to the CIAL proposal to reschedule its loan, thus reducing the interest rate to 12 per cent. After converting a part of the loan into equity, the remainder would have an interest rate of only 11 per cent, the sources added.