Govt seeks legal view on GMR's funding for Delhi Airport

New Delhi: Questioning the advance that GMR Group is seeking from commercial developers for space at the Delhi Airport, the government has sought legal opinion on the funding structure for the Rs 9,000 crore modernisation plan.
The Civil Aviation Ministry has approached the Law Ministry on the Rs 50 crore per acre sought by GMR-led Delhi International Airport Private Ltd (DIAL) for 45 acre of commercial space as 8-10 per cent lease rental, a move aimed at raising Rs 2,250 crore.
When contacted, ministry sources confirmed the move while indicating reservation on the quantum of advance that could come in the way of higher rental.
The issue, if not cleared at the earliest could impact the financial closure of the project targeted to be completed ahead of Commonwealth Games in 2010.
When contacted, a spokesperson for GMR said it has asked for clearance of the master plan as also the funding structure which is as per Operation, Management and Development Agreement, a deal document signed between Airports Authority of India (AAI) and GMR for the project that would scale up the airport's capacity to handle 35 million passengers a year.
28/10/07 PTI/Economic Times

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Categories: Airports Oct 2007