[New Delhi] 64% Share Holder GMR Reluctant to Share info with 26% Owne AAI on DIAL Accounts For Audit
As DIAL completes ten years of operating the international airport here, majority stakeholder GMR remains reluctant to share certain financial information about the joint venture sought by the Airports Authority of India for audit purpose.
Diversified GMR group holds 64 per cent stake in Delhi International Airport (P) Ltd (DIAL) while Mini-ratna Public Sector Undertaking AAI has 26 per cent ownership and the rest is with Germany’s airport operator
As per Sources ,GMR has been showing reluctance to share certain documents related to the accounts of DIAL with AAI even after a year of the government informing GMR of a CAG audit of the AAI revenue of DIAL.
According to them, AAI has sought various documents, including those pertaining to DIAL’s internal audit, for a proposed (Comptroller and Auditor General) audit of the former’s accounts.
As part of the JV agreement, the government-run airport operator is entitled to a 46 per cent share in the revenue of DIAL.
A set of detailed queries sent to GMR spokesperson, Sidharath Kapur President and CFO-Airports at GMR Group and DIAL Chief Executive Officer Prabhakara Rao on April 27, on whether it has refused to share the internal audit report of DIAL remained unanswered.
The query on whether GMR has refused to share with AAI documents related to the joint venture’s various subsidiaries also did not elicit any response.
Earlier , a DIAL spokesperson had responded to queries related to possible audit of DIAL accounts by CAG.
On whether GMR has provided all the documents as requested for the CAG audit, the spokesperson said AAI has not asked for any documents from DIAL for the audit.
Interestingly, on February 25, the government informed the Lok Sabha that AAI has sought documents from its joint venture partners — GMR and GVK — for a CAG audit of the books of accounts of the Delhi and Mumbai airports.
“AAI has appointed CAG as its representative to scrutinise the books of accounts of Delhi International Airport (DIAL) and Mumbai International Airport Limited (MIAL) to ensure that due government share is accruing to AAI,” Minister of State for Civil Aviation Mahesh Sharma had said in a written reply.
Tag: GMR
64% Share Holder GMR Reluctant to Share info with 26% Owner AAI on JV DIAL
NCR To Get Second New Airport:Civil Aviation Min Cleared Plan
[New Delhi] NCR To Get Second New Airport.Civil Aviation Min has Cleared The Plan
Civil Aviation Ministry today cleared a proposal for setting up a second airport in the National Capital Region.
GMR Group, which operates the Indira Gandhi International Airport Ltd here, would be preferred for developing the proposed airport, Minister of State for Civil Aviation Mahesh Sharma said that The proposal, cleared by the Ministry today, would soon be sent to the Cabinet for its approval,
According to Minister , GMR Group — the majority stakeholder in the venture that operates the Delhi International Airport — is proposed to be accorded the right of first refusal with regard to the new project.
For the new project, the government would be required to amend certain regulations as existing rules do not allow a second airport within a 150 kilometre radius of an existing one, unless the latter is functioning beyond its operational capacity.
Delhi Airport handled 40 million passengers during 2014-15 period and the number is expected to rise further.
Govt Takes Time To Justify ,Privatization Of 4 Airports :Bidding Process Delayed
[New Delhi]Govt Needs More Time To Justify ,Privatization Of 4 Airports :Bidding Process Delayed
Privatization Of Airports Have Been Opposed By The Airport Employee Unions And Parliamentarians
The Airports Authority of India (AAI) has again extended the deadline for submitting bids for control of four airports, further delaying their privatisation process.The private players can now submit their applications for short-listing till July 1,
The AAI, which invited ‘Request for Qualification (RFQ)’ to handover the management, operations and development of the state-controlled airports in Kolkata+Chennai+ Ahmedabad + Jaipur last year, had earlier extended the date for submitting the bids from March 24 to May 26.
The government-run airports operator, however, did not specify the reason for extending the deadline further.
The AAI had last time pushed the date on the grounds that it wanted to sort out manpower related issues prior to transferring these airports, which have already seen a public investment of Rs 5,000 crore, to the domestic corporates.
“There are many issues. There are issues relating to human resources. A concerted decision has to be taken (on such issues). Whatever are the concerns of the employees, they have to be addressed,” Airports Authority of India chairman R K Srivastava had said, while justifying the decision to extend the deadline earlier.
AAI employees union, however, is opposed to privatisation on the ground handing over these airports, after the two highest revenue-generating airports in Delhi and Mumbai, to the private sector would not only recede AAI’s topline but also lead to massive lay-offs.
Domestic corporates including Tata and Adani groups, existing airport operators
GMR and GVK groups as well as
Siemens Postal Parcel and
Airport Logistics Private Limited,
International Business Development Flughafen,
Zurich, Flemingo Duty Free Shop Pvt Ltd and
Cochin International Airport
have also shown interest in the these airports
Civil Aviation Ministry Shows Affirmation To a Demand For CBI Probe into Mumbai Airport Land Scam
[New Delhi]Civil Aviation Ministry Shows Affirmation To a CBI Probe into the GVK-run Mumbai Airport Land Issue
Indian Civil Aviation Ministry may look into the demand of AAI employees union for a CBI probe into the GVK-run Mumbai Airport land issue, on which public accounts watchdog CAG had last year rapped the government for its decision to grant an extension to the project.
Minister of State for Civil Aviation Mahesh Sharma when asked by Union said “We will get it (CBI probe issue) examined,”
He also said that he had a meeting with his ministry officials as well GMR group executives over the registration of a Preliminary Enquiry (PE) by the CBI against Delhi International Airports Ltd (DIAL), GMR and unknown officials of Civil Aviation Ministry and AAI for alleged irregularities in the Delhi Airport land deal.
“(About) Delhi Airport there was a question that we have given them land of so many thousand crore of rupees…Recently I had called GMR people for their version (on the issue) and I also called my people for their version,” Sharma said.
Alleging that the Mumbai Airport land “scam was bigger than the Delhi Airport land “scandal”, the Airports Authority Employees union had recently requested the central investigating agency to probe the issue.
“Delhi Airport land is a big scam and the Mumbai Airport land (scam) is even bigger… Regarding Mumbai airport, the CAG report is in public domain… Please investigate Mumbai airport case also,” AAEU had said in its request to CBI, the copies of which were also marked to the CVC, minister of Civil Aviation and AAI Chairman.
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