AAI dilly-dally over funding delays IGI hotel project

New Delhi: Even as the Airports Authority of India (AAI) remain undecided over funding of the hotel project at the Indira Gandhi International Airport in New Delhi, the logjam over the issue may delay the hotel project and it may not come up in time for the Commonwealth Games in 2010.
As per plans, a 3,000-room hotel complex was to be built at the 5% area, which the developers of the Delhi airport developers are allowed to undertake for commercial development.
Last year, Delhi International Airport Ltd (DIAL) had created subsidiaries and tried to develop a hospitality district on 45 acres of the approximately 250 acres of airport land that it is allowed to develop by taking security deposits toalling Rs 2,750 crore from realty developers.
This move was opposed by the AAI as it felt that DIAL, the developers of IGI, was taking revenue away from the AAI by forming subsidiaries. The government-owned airport developer contended that the deposits DIAL took were too high and is a part of its revenue and not deposits that were to be returned.
The GMR Infrastructure Ltd-led Delhi International Airport Ltd (Dial) consortium, which is modernising India’s second busiest international airport by traffic had planned to raise around Rs 2,800 crore in debt from land lease rights for some 45 acres of airport land through a subsidiaries, Delhi Aerotropolis Pvt Ltd, to fund the airport’s development.
13/06/08 Shauvik Ghosh/Financial Express

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Categories: Airports Jun 2008