All impediments before Delhi International Airport Ltd (DIAL) for declaring financial closure for the first phase of the airport?s modernisation have been cleared. DIAL?s plan to launch a subsidiary called Delhi Aerotropolis Pvt Ltd (DAPL) for securing Rs 2,835 crore in refundable deposits for a period of 28 years, apart from a licence fee for leasing out 45 acres of land to private developers through a bidding process had come under scrutiny of the civil aviation ministry.
?The ministry had objected to the quantum of the deposits and now since the Attorney General has cleared DIAL?s proposal there is not much else that the critics can do,? a ministry official said.
?There is no impediment on DIAL on accepting refundable security deposits from developers,? as a part of means to finance its obligations under the agreement for the project, Attorney General Milon K Banerji has reportedly said in his report.
?Raising of refundable deposits should not be seen as any substitution of revenues or a foul play on the part of DIAL,? Banerji is said in his report to the ministry.
DIAL can now achieve financial closure for the Rs 8,900-crore project for which the company has proposed to raise Rs 3,144 crore by way of trade advances and deposits.
Around 5% of the land under the airport?s ambit is likely to be used for developing hotels and convention centers, as was agreed in the contract signed with AAI.
Under the agreement, AAI receives 45.99% revenue from the airport operator for the 30-year period, for which the airport has been leased out.
DIAL has already received bids from about 40 aspirants, including national and global hospitality players and commercial developers, for a pie in the project. But the promoter was unable to take a call in view of the resistance from the aviation ministry on the ground that the quantum of advance sought would eat into the revenue.
The GMR led consortium holds 74% in the project, while the remaining 26% is held by the AAI. But ministry officials still believe that DIAL?s financial model will substantially reduce revenue share for the state owned-AAI as the security deposit may not constitute revenue.