CAG says DIAL to earn Rs 1,63,557 crore from concessional land

PTI | May 23, 2012



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. .

Comments

 

Other News

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Skin in the game or masterful market timing?

When a company founder opens their personal chequebook to buy shares in their own business, stock markets usually applaud. To the average retail investor, it feels like the ultimate vote of confidence, a sign that the people running the show have real skin in the game and believe brighter days are ahead.

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

What is colonialism? A relook at modern history

The Chromatic World Order: The Fiction That Rules Our World  By Sajid Mohamed Aakar Books  

Monsoon session of parliament adjourns sine die

The Monsoon Session, 2026 of Parliament which commenced on July 20 was adjourned sine die on Thursday. The session provided 19 sittings spread over a period of 25 days.   During the session 11 Bills were introduced in Lok Sabha and 2 Bills were introduced in Rajya Sabha. 12 B

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter