The plan is to develop the airport on the lines of the Cochin International Airport (CIAL), a joint venture project which has proved a big success.
Chief Minister V S Achuthanandan said after a cabinet meeting last night that the Government would hold 26 per cent of the equities directly, 23 per cent would be set apart from public sector undertakings and two per cent for the company promoted for the purpose by the government.
A total of 2200 acres of land would be acquired for the airport on fast-track mode.
As in the case of CIAL, Chief Minister would be chairman of the company.
Kannur would be the fourth airport in the state after Thiruvananthapuram, Kochi (Nedumbassery) and Kozhikode (Karippur).
According to civil aviation experts, development of Kannur airport would give a fillip to air travel and goods movement considering the Gulf connection of people from the north Malabar region.