Mumbai airport project delays haunt GVK

New Delhi: The government has expressed serious concern over loss of revenue due to delay in launching duty-free outlets at the Mumbai airport. It has questioned the GVK Group-led Mumbai International Airport (MIAL) over the loss of revenue to the Airports Authority of India (AAI) on account of delay in several projects such as duty-free shops.
“We have written to MIAL for the revenue loss due to delay in the duty-free retail project,” a senior AAI official said. AAI holds 26% stake in MIAL and is entitled to get 36.7% revenue from the airport.
MIAL, which is modernising the Mumbai airport, had awarded a mega contract for duty-free outlets to a joint venture between ITDC and Aldeasa of Spain. However, it failed to take off. Then the contract was offered to DFS, which is yet to begin its operation. DFS was expected to launch the much-awaited duty-free shops by the end of January. Passengers using the airport for international flights are also denied of duty-free shopping facilities due to the delay.
DFS, the second-highest bidder after ITDC-Aldeasa combine, is committed to giving a minimum guarantee of Rs 260 crore to MIAL, about 60% lower than the ITDC-Aldeasa JV.
07/03/08 Nirbhay Kumar/Economic Times

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Categories: Airports Mar 2008