CAG findings on DIAL revenue sharing come in for criticism

The Comptroller and Auditor General's (CAG) report on the implementation of the public-private partnership -- International Airport Limited (DIAL), is likely to be tabled in Parliament in the ongoing session soon.

The Civil Aviation Ministry and DIAL have already made their submissions to the CAG, challenging several aspects of its findings.

In its report, CAG is understood to have pointed out that the potential earning from land amounted to a whopping Rs 1,63,557 crore. This land -- almost 4,800 acres -- was leased to DIAL by Airports Authority of India at a lease rent of Rs 100 per annum for 58 years.

The officials said the figure was grossly misleading as this was the absolute amount of revenues that would accrue to DIAL over 58 years and, of this, 46 per cent would be shared with AAI. The amount also did not represent the time value of money, they said.

Regarding revenue sharing with AAI, the officials, who requested anonymity, said DIAL has already paid Rs 2,935 crore to AAI since 2006 till this year.

AAI is expected to receive an additional Rs 2,40,209 crore during the remaining concession period of 54 years, apart from the dividend payments it gets, 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 Supreme Court, they said the determining factor for granting concession was the gross revenue share received by the government (AAI).

  

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Business Standard

CAG findings on DIAL revenue sharing come in for criticism

Press Trust of India  |  New Delhi 



The Comptroller and Auditor General's (CAG) report on the implementation of the public-private partnership -- International Airport Limited (DIAL), is likely to be tabled in Parliament in the ongoing session soon.

The Civil Aviation Ministry and DIAL have already made their submissions to the CAG, challenging several aspects of its findings.

In its report, CAG is understood to have pointed out that the potential earning from land amounted to a whopping Rs 1,63,557 crore. This land -- almost 4,800 acres -- was leased to DIAL by Airports Authority of India at a lease rent of Rs 100 per annum for 58 years.

The officials said the figure was grossly misleading as this was the absolute amount of revenues that would accrue to DIAL over 58 years and, of this, 46 per cent would be shared with AAI. The amount also did not represent the time value of money, they said.

Regarding revenue sharing with AAI, the officials, who requested anonymity, said DIAL has already paid Rs 2,935 crore to AAI since 2006 till this year.

AAI is expected to receive an additional Rs 2,40,209 crore during the remaining concession period of 54 years, apart from the dividend payments it gets, 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 Supreme Court, they said the determining factor for granting concession was the gross revenue share received by the government (AAI).

  

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CAG findings on DIAL revenue sharing come in for criticism

A CAG report on the Delhi airport joint venture has come in for criticism from officials who maintain that the government auditor's findings on revenue- sharing, potential earning from land and other aspects are not correct.

The Comptroller and Auditor General's (CAG) report on the implementation of the public-private partnership -- International Airport Limited (DIAL), is likely to be tabled in Parliament in the ongoing session soon.

The Civil Aviation Ministry and DIAL have already made their submissions to the CAG, challenging several aspects of its findings.

In its report, CAG is understood to have pointed out that the potential earning from land amounted to a whopping Rs 1,63,557 crore. This land -- almost 4,800 acres -- was leased to DIAL by Airports Authority of India at a lease rent of Rs 100 per annum for 58 years.

The officials said the figure was grossly misleading as this was the absolute amount of revenues that would accrue to DIAL over 58 years and, of this, 46 per cent would be shared with AAI. The amount also did not represent the time value of money, they said.

Regarding revenue sharing with AAI, the officials, who requested anonymity, said DIAL has already paid Rs 2,935 crore to AAI since 2006 till this year.

AAI is expected to receive an additional Rs 2,40,209 crore during the remaining concession period of 54 years, apart from the dividend payments it gets, 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 Supreme Court, they said the determining factor for granting concession was the gross revenue share received by the government (AAI).

  
image
Business Standard
177 22

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