Delhi airport tariff hike to impact PPP projects, says S&P

Mumbai: A little after a Geneva headquartered airline trade body warned the Airport Economic Regulatory Authority (AERA) of adverse impact of increasing tariffs at the Delhi International Airport (DIAL), credit rating firm S&P has issued a report stating that any outcome on the tariff determination for the airport is bound to have long-term impact on the way public-private partnership projects take shape in the country.
Global Credit Portal, a web-based analysis arm of S&P in a 6th March report by primary credit analyst Rajiv Vishwanathan said, "the outcome (of DIAL's tariff determination) is likely to influence private participation in regulated capital intensive infrastructure projects such as construction of airports, metro, railways and ports in India."
The GMR-led consortium that operates the DIAL is seeking about 774% increase in tariffs for the Rs 12,700 crore project in which it had invested .
"The regulator, in a consultation paper published on January 3, 2012, countered with a proposal for a one-time hike of 334% or a hike of about 148% each year over the next two years," Vishwanathan wrote. It is clear that any move by the regulator will be keenly tracked by the industry.
07/03/12 Manisha Singhal/Economic Times

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Categories: airports Mar 2012