Delhi airport co can take advance for commercial space: AG

New Delhi: The Attorney General, the government's chief legal advisor, has said that the GMR Group-promoted Delhi International Airport Ltd (DIAL) has the right to raise deposits from bidders of commercial space to part-finance the modernisation of the capital's airport, estimated to cost Rs 8,900 crore.
In his report to the law ministry, from which the civil aviation ministry has sought an opinion on DIAL's plan to take advances, Attorney General Milon K Banerji is understood to have said: 'I am of the opinion that DIAL has a legitimate right to raise such deposits and it should not be seen as any substitution of revenues or a foul play on the part of DIAL.'
'There is no impediment to DIAL accepting refundable security deposits from developers as part of means to finance its obligations,' he said.
The observation could give a boost to DIAL, which is looking to achieve financial closure of the project for which it has proposed to raise Rs 3,144 crore by way of trade advances and deposits.
23/11/07 Press Trust Of India/Business Standard

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Categories: Airports Nov 2007