DIAL may raise debt, equity; nears fin closure

New Delhi: The financial closure of the Delhi International Airport Ltd (DIAL) project is expected within the next few weeks.
The project, a joint venture between the Airports Authority of India, GMR group and three other partners, has been mired in controversy after AAI raised objections over the GMR group seeking deposits for commercial development on part of the airport land.
The financial closure was initially slated for July this year, but in the absence of a decision on the Rs 2,250 crore (which is to be mopped up through deposits), it has been hanging fire.
Perhaps irked by the delay in deciding on the deposits issue, GMR has decided to plug the gap to get the Rs 8,900 crore airport development project (for phase one) back on track.
Speaking to DNA Money, DIAL Director G Subba Rao said, “Regardless of whether deposit money is okayed or not, financial closure will happen in December. We can raise debt and increase equity exposure to the project to meet the Rs 2,500 crore-shortfall in case deposits are not allowed.”
30/11/07 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Airports Dec 2007