DIAL working on alternative revenue model

New Delhi: The GMR-backed Delhi International Airport Pvt Ltd's (DIAL) is learnt to be working out alternate revenue model for its proposed 45-acre hospitality district. The earlier plan of creating a subsidiary and making it charge hefty advance from successful bidders for building hotels was frowned at by the aviation ministry as there were fears that it may have affected the revenue share model with the Airports Authority of India (AAI). Later, the plan was referred to the Attorney General and was upheld there.
"The airport has to be completed in time for the 2010 Commonwealth Games Delhi will host. Although the AG cleared our plan, we are looking at alternate revenue models," said a senior DIAL official, while refusing to divulge what shape the new model will take.
DIAL had initially planned to take a security fee of Rs 50 crore per acre from successful bidders. A subsidiary formed to provide infrastructure in hospitality district, Delhi Aerotropolis Private Limited, was to have charged about Rs 13 crore per acre for the job. Both these charges would have led to a revenue generation of Rs 2,835 crore for the consortia.
27/12/07 Saurabh Sinha/Times of India

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Categories: Airports Dec 2007, New Dec 2007