DIAL arms to have govt nominees on board

New Delhi: In A bid to end the row over objections raised by the civil aviation ministry and the Airports Authority of India (AAI) over formation of subsidiaries, the GMR Groupled Delhi International Airport (DIAL) has offered berths for government representatives on the boards of subsidiary companies. DIAL has also informed the civil aviation ministry that revenues generated through lease of land for commercial purposes would flow into DIAL rather than a subsidiary proposed to manage commercial development of land.
DIAL is planning to develop non-aero business through Delhi Aerotropolis, a 100% subsidiary, to generate revenue from commercial use of land owned by Delhi airport. The revenues from the property developed by this subsidiary would, however, flow directly to DIAL. One more subsidiary is planned for cargo operations . While Delhi Aerotropolis would remain a wholly owned subsidiary of DIAL, the cargo operation could take in a strategic partner, according to GMR officials.
DIAL would accommodate the government’s representatives on the subsidiary companies floated by it in future too, it has been clarified. The joint sector company plans a wholly-owned subsidiary for cargo operations at the country’s second busiest airport.
23/10/07 Nirbhay Kumar/Economi Times

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Categories: Airports Oct 2007