Civil aviation ministry, DIAL face the heat

New Delhi: Slamming the levy of airport development fee (ADF) on passengers, the Comptroller and Auditor General (CAG) on Friday said the civil aviation ministry had violated bid conditions, giving benefits of Rs 3,415 crore to Delhi International Airport Limited (DIAL), in which the GMR Group holds majority equity stake.
The ADF benefit was given to DIAL to bridge the financing gap between the airport’s actual and original project costs. The CAG report said DIAL also secured land valued at Rs 24,000 crore for commercial use at a lease rental of Rs 100 a year, and this could potentially lead to DIAL earning Rs 1.6 lakh crore over 60 years.
“According to the operation management development agreement (OMDA), it was the responsibility of the joint venture company to bring in equity. Levy of development fee is against the OMDA,” A K Patnaik, additional deputy, CAG.
18/08/12 Business Standard

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

Categories: airports Aug 2012, Indian Aviation- In General Aug 2012