DIAL robbing govt of revenue?

New Delhi: Delhi International Airport Ltd (DIAL), the privately-led consortium that runs the Capital’s Indira Gandhi International airport, could be denying Airports Authority of India (AAI) massive revenues through a complex web of joint ventures (JVs). In 2006, DIAL had won rights to run IGI airport for 30 years by pledging 46% of its revenue to government-owned AAI. According to the agreement between DIAL and AAI, DIAL should pay Rs 46 for every Rs 100 of revenue earned.
In reality, however, AAI may be receiving much less as many activities — food and beverages, cargo, ground handling, advertisements, fuel infrastructure, information technology, and ground power equipment — have been farmed out to 11 JVs through separate agreements with no role of AAI. As a result, DIAL doesn’t fully show revenues from these JVs, bringing down the amount of money to be shared with AAI.
In a confidential note, a copy of which is with HT, aviation infrastructure regulator Airports Economic Regulatory Authority (AERA) has told the civil aviation ministry of DIAL’s JVs.
“It has been alleged that various revenue streams are being sub-contracted to JVs specially created by DIAL on revenue-sharing basis,” AERA chairman Yashwant Bhave said in a letter to civil aviation secretary last month. “This reduces the revenue share of AAI.”
17/12/10 Gaurav Choudhury/Tushar Srivastava/Hindustan Times

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Categories: Airports Dec 2010