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Report No. 5 of 2012 – Performance Audit of Implementation of Public Private Partnership Indira Gandhi International Airport Delhi, Ministry of Civil Aviation

Date on which Report Tabled:
Fri 17 Aug, 2012
Date of sending the report to Government
Government Type
Union
Union Department
Commercial
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Sector Transport & Infrastructure

Overview

With the opening of Indian airspace to private and international operators, the existing airport infrastructure in the country proved to be inadequate to cope with the unprecedented growth in traffic and cargo. The Ministry of Civil Aviation (MoCA) in 2006, projected a requirement of an additional RS 40,454 crore to augment and modernize existing airports as also to construct new greenfield airports. The revenue surplus generated by Airports Authority of India (AAI) was found to be grossly inadequate to meet this requirement.

In January 2000, the Cabinet approved the restructuring of airports through the long term leasing route. Later, however, in September 2003, the Cabinet approved the restructuring of Delhi and Mumbai airports through the Joint Venture mode. In pursuance of this decision, after selection of the JV partner, AAI incorporated a subsidiary company viz. M/S Delhi International Airport Pvt. Ltd (DIAL), and subsequently sold 74% of the shares of DIAL to the JV Consortium. On 4 April 2006, in the capacity of the state promoter, AAI signed an Operation Management Development Agreement (OMDA) with DIAL. The AAI handed over IGI airport, Delhi to DIAL on 3 May 2006 on 'as is where is' basis and granted DIAL the exclusive right to undertake functions of operations, maintenance, development, design, construction, modernization, finance and management of the Airport.

On 26 April 2006 Government of India signed another agreement with DIAL viz State Support Agreement (SSA). The agreement laid down conditions and nature of support to be provided by Government of India, along with the mutual responsibilities and obligations between Government and DIAL.

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