Draft CAG report erroneous, benefits were available to all: GMR
Quotes

Draft CAG report erroneous, benefits were available to all: GMR

Last Updated: Wednesday, May 30, 2012, 21:04
 
 Comment 1
 
Draft CAG report erroneous, benefits were available to all: GMR
New Delhi: Terming the draft CAG report on Delhi International Airport (DIAL) "erroneous", GMR Infrastructure Wednesday said that land at concessional rates and other benefits available to it to run the Delhi airport were part of the bid document and were available to every bidder.

"It is a draft report, which we have not seen it. However, Rs 1.63 lakh crore figure, as quoted by the media, as potential earning for us over a 58-year period for the land given is erroneous calculations," a company spokesperson said.

GMR Infrastructure is the majority stakeholder in DIAL with 54 percent stake and had won the bid in a consortium in 2006 to develop and modernise the Indira Gandhi International Airport.

The spokesperson added that "there was no concessional land as part of Operations, Maintenance and Development Agreement. Only 5 percent of the total land (5,000 acres) at Delhi airport is supposed to be available for commercial operations.

"For that, the transfer deed was to be done on a nominal rate of Rs 100. This was part of concessional agreement and bid. It was available not only for us but for every bidder who have put in their bids, when privatisation of the Delhi airport was announced."

In its draft report on the public private partnership for the Indira Gandhi International Airport, the CAG has found that DIAL has a potential to earn Rs 1,63,557 crore over a 60- year period from the land given to it on a lease rent of Rs 100 per annum, hurting the interest of the government.

However, the GMR spokesperson contended that with the same calculation method, benefits available to Airports Authority of India (AAI) as part of their stake in DIAL would amount to Rs 3 lakh crore for the 30 year concession period.

"We had given AAI Rs 700 crore approximately in 2010-11 for their stake in DIAL. Going by the same basis of calculation, AAI's share would amount to Rs 3 lakh crore over the concession period," the spokesperson said.

The Comptroller and Auditor General (CAG), in its draft report which is yet to be tabled in Parliament, had also come down heavily on DIAL on the issue of levy of user charges on passenger by saying that it was not part of the original agreement when the land was given to the developer (DIAL).

However, GMR said that their bid and issues related to development fees were examined by the Supreme Court and the matter was settled.

"Bid was completely examined by the Supreme Court and there was no change in the terms and conditions. Even the matter of development fee has been settled by the Supreme Court," the GMR spokesperson said, adding that DIAL has not been audited or contacted by the CAG till date.

DIAL is a public private partnership (PPP) project and was constituted for the specific purpose of modernising and operating the Indira Gandhi International Airport (IGIA) at Delhi.

Stating that PPP projects are not subject to the CAG audit, the GMR spokesperson said, "DIAL has not been audited by the CAG. We have not received any communication from the CAG so far on the matter."

GMR Infrastructure had won the bid to develop and modernise Delhi International Airport in 2006 through a consortium and has a 54 percent stake in DIAL.

Fraport AG and Eraman Malaysia are the other consortium partners with 10 percent stake each, while rest of the stake is with Airports Authority of India.

On April 4, 2006, it signed the OMDA with the AAI for a concession period of 30 years.

PTI


First Published: Wednesday, May 30, 2012, 21:04


Comments


comments powered by Disqus
BRICS Annual Summit 2014
BRICS Annual Summit 2014
Tata Zest Standout Features: In Pics
Tata Zest Standout Features: In Pics
New car launches in July
New car launches in July
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics
Google I/O 2014
Google I/O 2014

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved