Charge flyers more or give us soft loan: GMR

New Delhi: The slowdown in air traffic and real estate crash have cast their shadows on completion of the Rs 8,900-crore Delhi airport modernisation plan by 2010. The GMR-backed Delhi International Airport Ltd (DIAL) has so far tied up Rs 4,800 crore and the consortia will exhaust this amount in 45 days.
DIAL has now suggested two ways for raising the balance amount either levy a charge of Rs 200-300 on each domestic outbound and Rs 1,000 on each international flier at IGI from January 1 or a long-term soft loan from the Centre. Unless a view is taken fast on these demands, the airport may not be able to meet its deadline, the consortia has told the government.
The aviation ministry admits funding has become a serious issue in Delhi. Civil aviation minister minister Praful Patel recently said some way would be found soon as "money has to come from somewhere." Top officials say the airport funding issue is much more serious than the airline crisis, terming it as a 'timebomb'.
The arranged funds of Rs 4,800 crore Rs 2,500 crore equity and Rs 2,300 crore debt that will exhaust in 45 days have been spent on building the third runway, upcoming new terminals and new systems like inline baggage and renovation of existing terminals.
The consortia was initially expecting to raise Rs 2,750 crore from the upcoming hotel district. However, due to the downturn in real estate, it will now barely manage about Rs 1,000 crore, said sources. Its external commercial borrowing (ECB) target of Rs 1,400 crore was linked to successful bidding of hotel district. Now with both capital and revenue shortfall on that end, ECB stream has also come under doubt.
20/12/08 Saurabh Sinha/Times of India

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Categories: Airports Dec 2008