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CAG questions land allotment in Delhi airport deal

The CAG has found that the company, which runs the Delhi International Airport, 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.

twitter-logo PTI   New Delhi     Last Updated: May 23, 2012  | 17:03 IST

The CAG has found that the company, which runs the Delhi International Airport, 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.

A draft report on the public private partnership for the Indira Gandhi International Airport has also come down heavily on Delhi International Airport (DIAL), which runs the utility, on the issue of levy of user charges on passenger which was not part of the original agreement when the land was given to it.

The Comptroller and Auditor General of India found that whenever DIAL had raised an issue regarding revenue to accrue to it or expenditure to be debited to the government in contravention of the agreement, the Civil Aviation Ministry and Airport Authority of India have always ruled in favour of operators and against the interest of the government.

Efforts to reach DIAL for its reactions failed to fructify.

The report, which is yet to be tabled in Parliament, refers to the leasing out of 4,608 acres for development of the airport with an additional 190 acres leased to DIAL. The land and the premises were leased out at Rs 100 annually to DIAL.

For the additional land of 190 acres, a one-time fee of Rs 6.19 crore was levied on DIAL. The original agreement permitted DIAL to utilise 5 per cent of the total area of 4,799 acres for commercial exploitation, which would work out to 240 acres.

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