GMR makes case for hiking airport tariff, cites Rs 229 cr loss
"Our airports lacked investments in every aspect --terminal facilities like X-ray, baggage screening, check-in, aerobridges, retail, airside and cityside (access road, metro etc). Our job was both capacity enhancement and adding quality," said a senior Delhi International Airport Limited (DIAL) official not wishing to be named.
He said the charges at the airport have not been increased since 2009, when the Airport Economic Regulatory Authority (AERA) became functional.
"Since 2000, the tariff at IGI airport was increased only once by 10 percent in 2009 as compared to the consumer price index which went up by 200 percent.
As of Wednesday, airport charges at IGI is among the lowest compared to similar airports worldwide," the official said, making a case for a hike in airport tariff.
The aeronautical tariff rates are less than half compared to that in Bangkok, Hong Kong or Singapore. It is just 15 percent of the tariff being charged at the airports in London, Toronto and Narita, he said.
DIAL continued to post losses due to the pending tariff revision, he claimed adding that this forced it to strongly pitch for a one-time jump of a hefty 874 percent in tariff rates for a 5-year period from 2009-10 to 2013-14.
GMR Wednesday announced that DIAL posted a loss of Rs 229 crore in the third quarter of this financial year. The company's runs four airports -- one each in Delhi and Hyderabad and two abroad at Istanbul and Male in Maldives. "The energy business also suffered loss of revenue due to floods in the South African coal mine," Subbarao said.
During the quarter, GMR commissioned the 25 MW Gujarat solar power project and and achieved financial closure for Maru Transmission Service Company and Aravali Transmission Service Company.
It also received environment clearance for the 300 MW Badrinath hydro project in Uttarakhand as well as for the 350 MW expansion of Kamalanga project. "Another 2418 MW capacity is scheduled to be commissioned within the next 12 months," he said.
On its highways business, Subbarao said, "Our preparations are well under way to take over the operations of the mega project 'Kishangarh-Udaipur-Ahmedabad expressway' from May, which will give significant cash flow from the first day of operations."
The company has planned a capex of Rs 14,000 crore for the next fiscal which will be utilised for its road projects as well as for power projects, he said.
"We are expecting better revenues and cash flows with the completion of three road projects including Chennai outer ring road, Hyderabad-Vijaywada and Hungund-Hospet, takeover of the brownfield Kishangarh-Udaipur-Ahmedabad mega highway project and the upcoming power projects. Our focus is on cash and we are putting high emphasis on sweating our assets" he said.