Levy of airport development fee slammed

New Delhi: Despite explanations from the Civil Aviation Ministry and Delhi International Airport Limited (DIAL), the Comptroller and Auditor-General has criticised the charging of development fee on passengers at the Indira Gandhi International Airport, saying the levy has violated the bid conditions and given Rs. 3,415 crore in monetary benefit to the operator.
In its report tabled in Parliament, the CAG has said that whenever the GMR-owned DIAL raised an issue of revenue to go to it or expenditure to be debited to the government, the Ministry and the Airports Authority of India (AAI) had always ruled in favour of the operator and against government interest, in contravention of the Operation, Maintenance, Development Agreement (OMDA).
The report says DIAL can potentially earn Rs. 1,63,557 crore over a 60-year-period from the land leased out to it at Rs. 100 a year, with an equity investment of just Rs. 2,450 crore. GMR Infrastructure holds 54 per cent stake in DIAL, and the AAI has the rest.
17/08/12 The Hindu

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Categories: airports Aug 2012