Centre plans sops for GMR to resolve Greater Noida airport row

New Delhi: The group of ministers (GoM), set up to study the legal aspects of the Greater Noida airport, met on Thursday but deferred any decision on the issue. “Today was just to explain the issues to the other members,” minister of civil aviation Praful Patel said.
The proposal for the airport has been facing stiff resistance from the GMR-led consortium, which along with the Airports Authority of India (AAI) has formed a joint venture company Delhi International Airport Ltd (DIAL), which is modernising the Indira Gandhi International (IGI) airport in the national capital.
To facilitate the coming up of the airport and neutralise any opposition from the GMR group, the government is now contemplating lowering its component of revenue share with the airport developer, but by doing this they may open a can of worms.
The government through the Airports Authority of India (AAI) gets 46% of the revenue from the Delhi airport from its 26% equity in DIAL.
“The equity structure will not change but maybe the revenue model or the other concession agreements might see changes,” a ministry official said.
01/02/08 Shauvik Ghosh/Financial Express

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Categories: airports Feb 2008, New Feb 2008