New Delhi: Private airport developers have questioned the airport regulator's refusal to grant a 'reasonable return' on money raised by Delhi International Airport Limited (DIAL) from leasing land allotted by the government for commercial use.
Airport operators like the GMR-led DIAL and GVK-led Mumbai International Airport Limited (MIAL) have argued that they could have invested the money raised in the form of security deposits from this land in any other venture they wanted. At a consultation meeting last week on Delhi airport's tariff hike demands, operators insisted that they must be compensated for the opportunity cost of deploying the funds in the airport project.
At the consultation meeting on January 18, DIAL CFO Sidharath Kapur told the regulator that 'if DIAL had not used the funds raised from these security deposits for the project, then additional funds would have been raised through equity or debt on which the authority would have provided a return.'
A MIAL representative concurred. "There should not be zero return on refundable security deposits. They should be treated on par with internal accruals," said Gautam Arjun of MIAL, the airport operator for Mumbai.
27/01/12 Economic Times
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