Development and upgradation of the Delhi International Airport Ltd (DIAL) is being done under a joint venture between the Airports Authority of India.
NEW DELHI: With the civil aviation minister Praful Patel asserting on Monday that a decision on commercial development of the Delhi airport would be taken “broadly” in accordance with the opinion of the attorney general, the financial closure of this project should happen soon.
DNA Money had reported late last month that the ministry is expected to go by the AG view and allow GMR to raise money through deposits from prospective bidders for commercial development of up to 5% of the total airport land.
Development and upgradation of the Delhi International Airport Ltd (DIAL) is being done under a joint venture between the Airports Authority of India, GMR group and three other partners; it has been mired in controversy after the AAI raised objections to GMR seeking deposits for commercial development of part of the airport land.
But when asked whether the government had asked GMR to modify the model, Patel said, “There is no scope for going beyond the AG report. DIAL’s proposal is being examined but since AG is the highest law officer of the land, we will broadly take his view.”
The delay in the bidding process has already led to a delay in the project’s financial closure which was initially slated for July this year. Of the total project cost of Rs 8,900 crore, GMR last week raised Rs 4,940 crore via debt; Rs 1,000-1,200 crore is to be pumped in as equity, but the remaining Rs 2,760 crore is to be funded through quasi-equity. This quasi-equity component is what would get funded if the government allows GMR to raise deposit monies.
As per the OMDA (operation, management and development agreement) signed between the JV partners, the first phase of the airport development project should be completed by 2010.
GMR has already invited bids for commercial development and the deposit money would be redeployed to the airport-side development of the project.
According to estimates, passenger traffic at Delhi is expected to increase from 16.1 million in 2006 to 82.6 million by 2026. Which is why DIAL is projecting capacity to handle 37 million passengers by 2010 to 100 million by 2026.
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