CAG findings on DIAL revenue sharing come in for criticism

New Delhi: A CAG report on the Delhi airport joint venture has come in for criticism from officials who maintain that the government auditor's findings on revenue- sharing, potential earning from land and other aspects are not correct.
The Comptroller and Auditor General's (CAG) report on the implementation of the public-private partnership -- Delhi International Airport Limited (DIAL), is likely to be tabled in Parliament in the ongoing session soon.
The Civil Aviation Ministry and DIAL have already made their submissions to the CAG, challenging several aspects of its findings.
In its report, CAG is understood to have pointed out that the potential earning from land amounted to a whopping Rs 1,63,557 crore. This land -- almost 4,800 acres -- was leased to DIAL by Airports Authority of India at a lease rent of Rs 100 per annum for 58 years.
The officials said the figure was grossly misleading as this was the absolute amount of revenues that would accrue to DIAL over 58 years and, of this, 46 per cent would be shared with AAI. The amount also did not represent the time value of money, they said.
09/08/12 PTI/Business Standard

To Read the News in full at Source, Click the Headline

Categories: airports Aug 2012