Sans fee, DIAL is a flight to nowhere, says GMR

Hyderabad: Delhi International Airport Ltd (DIAL), an arm of infrastructure major GMR Infrastructure, seems to have hit a dead-end on fund-raising to develop the airport in the capital.
The company is pinning hopes on the continuance of the airport development fee (ADF), a proposal for which is pending with the Airports Economic Regulatory Authority (AERA).
“We are not in a position to raise any further equity because other members of our consortium have issues. The lenders are not comfortable about raising more debt since serviceability is seen an issue. So we are left with no option but to take the ADF route to bridge the gap in funding,” Sidharth Kapur, GMR’s chief financial officer (airports), told DNA.
The company had originally started the project of modernising the Delhi airport with an outlay of `9,000 crore. But following changes in the design of the project, the cost shot up to Rs12,800 crore.
GMR had then sought the government’s permission to impose an ADF and it was allowed to collect Rs200 from domestic passengers and Rs1,300 from international passengers for 36 months from the date of approval in 2009.
The approval was to raise about Rs1,827 crore in the form of ADF.
09/06/11 KV Ramana/Daily News & Analysis

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Categories: Airports Jun 2011