Tuesday, August 08, 2017

GMR DIALs wrong numbers, registers losses in crores

Public-private partnership (PPP) isn't really a partnership at all in the case of Indira Gandhi International (IGI) Airport. Delhi International Airport Pvt. Ltd (DIAL), a consortium led by the GMR group, actually 'socialise' the losses and privatise the profits. CAG's (Comptroller and Auditor General) 2016 draft revenue audit, accessed by DNA, revealed that the government lost Rs 2,397 crore in this airport from non-aeronautical services in the last six years.

Under the PPP contract, DIAL had agreed to share 45.99 percent of its gross revenue with Airports Authority of India (AAI), a government agency in the private-public partnership. But CAG's draft revenue audit shows that DIAL has not honoured the revenue-sharing and other terms and conditions.

DIAL has formed 11 joint ventures to run non-aeronautical operations, and its agreement with these JVs provided from 10 percent to 61 percent sharing of gross revenue on contract. AAI has been deprived of this revenue as per terms. In 2009, the UPA government allowed DIAL to recover Airport Development Fees (ADF) from passengers. CAG sources said DIAL collected more than Rs 3,500 crore from ADF and diverted this amount to cover project costs - which it was supposed to arrange from other sources like banks. However, more than one-fourth of its capital cost was paid by the passengers.
08/09/17 Dipu Rai/DNA/Zee News