New Delhi: With CAG stating that potential earning from land leased to Delhi airport operator DIAL could be a whopping Rs 1,63,557 crore, Civil Aviation Ministry on Friday said the figure was grossly misleading.
The amount was the estimate of commercial revenue that could accrue to Delhi International Airport Ltd (DIAL) over 58 years and, of this, 46 percent would be shared with Airports Authority of India (AAI), as part of a revenue-sharing agreement, Ministry and DIAL officials said.
The amount also did not represent the time value of money, the officials said, adding the figure was "grossly misleading."
They said these and other "lacunae" in the CAG report were also pointed out by the then Civil Aviation Secretary, Nasim Zaidi, in a letter to CAG chief Vinod Rai in June.
The CAG has objected to the fact that almost 4,800 acres of land was leased to DIAL by AAI at an annual lease rent of only Rs 100 for 58 years. DIAL is a joint venture of a GMR-led consortium, of which AAI owns 26 percent equity.
The officials said DIAL has already paid Rs 2,935 crore to AAI since 2006 till this year as part of the revenue sharing agreement and the state-run airports body is expected to receive an additional Rs 2,40,209 crore during the remaining concession period of 54 years.
AAI would receive this amount, along with the dividend payments it gets every year, they claimed.
The officials said the primary purpose of the land, leased to DIAL, was not for rental but to grant a concession for development, operations and maintenance of the airport and associated infrastructure.
Claiming that the entire bid process was transparent and approved by the government and the Supreme Court, they said the determining factor for granting concession was the gross revenue share to be received by the government or the AAI.
First Published: Friday, August 17, 2012, 18:07