Govt to abide by AG's view on Delhi airport funding: Patel
The Government will abide by the Attorney General's opinion that GMR group, looking after the modernisation of Delhi Airport, can raise deposits against rental for funding the Rs 8,900 crore project.
By PTI |
NEW DELHI: The Government will abide by the Attorney General's opinion that GMR group, looking after the modernisation of Delhi Airport, can raise deposits against rental for funding the Rs 8,900 crore project.
"We will have to abide by the Attorney General's opinion. After all, he is the country's highest law officer and Government banks on his suggestion," Civil Aviation Minister Praful Patel said when asked about reports that his ministry was not in favour of creation of subsidiaries and part-funding through deposits by the company executing the project.
GMR-led consortium holds 74 per cent stake in Delhi International Airport Ltd (DIAL). The remaining 26 per cent is held by the Airports Authority of India. It had last week announced raising loans of about Rs 5,000 crore from 12 banks.
The consortium had sought development of land around the Delhi airport for meeting its fund requirement. It plans to set up subsidiaries for hotel and cargo development.
DIAL proposes to take a rent advance that would go into its kitty while the annual rent would be shared between it and Airport Authority of India.
The AAI had objected to non-sharing of revenue of the land rent, after which the Aviation Ministry sought the opinion of the Attorney General.
Attorney General Milon K Banerji had said: "I am of the opinion that DIAL has a legitimate right to raise such deposits and it should not be seen as any substitution of revenues or a foul play on the part of DIAL."
"There is no impediment on DIAL on accepting refundable security deposits from developers as part of means to finance its obligations," he had said.
"We will have to abide by the Attorney General's opinion. After all, he is the country's highest law officer and Government banks on his suggestion," Civil Aviation Minister Praful Patel said when asked about reports that his ministry was not in favour of creation of subsidiaries and part-funding through deposits by the company executing the project.
GMR-led consortium holds 74 per cent stake in Delhi International Airport Ltd (DIAL). The remaining 26 per cent is held by the Airports Authority of India. It had last week announced raising loans of about Rs 5,000 crore from 12 banks.
The consortium had sought development of land around the Delhi airport for meeting its fund requirement. It plans to set up subsidiaries for hotel and cargo development.
DIAL proposes to take a rent advance that would go into its kitty while the annual rent would be shared between it and Airport Authority of India.
The AAI had objected to non-sharing of revenue of the land rent, after which the Aviation Ministry sought the opinion of the Attorney General.
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Attorney General Milon K Banerji had said: "I am of the opinion that DIAL has a legitimate right to raise such deposits and it should not be seen as any substitution of revenues or a foul play on the part of DIAL."
"There is no impediment on DIAL on accepting refundable security deposits from developers as part of means to finance its obligations," he had said.
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