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GMR Infra slips over 3% on CAG report

CAG slammed the govt for giving out Delhi airport, its land with a potential earning capacity of Rs 1,63,557 crore to private-led operator DIAL

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Press Trust of India Mumbai
Last Updated : Jan 25 2013 | 4:04 AM IST

Shares of GMR Infra today fell by over 3% after CAG said the Civil Aviation Ministry violated bid conditions, benefiting GMR-led DIAL by Rs 3,415 crore.

GMR Infra shares ended at Rs 20.55, down 3.07% from its previous close on the BSE. Intra-day, the stock had tanked 4% to Rs 20.35.

At the NSE, the scrip was down 3.54% at Rs 20.45.

CAG today slammed the government for giving out Delhi airport and its land with a potential earning capacity of Rs 1,63,557 crore to private-led operator DIAL which made a total equity contribution of only Rs 2,450 crore.

With an equity contribution of Rs 2,450 crore of which the private GMR-led consortium's share was Rs 1,813 crore, the Delhi International Airport Limited (DIAL) got a brownfield airport for 60 years, the report of the Comptroller and Auditor General (CAG) said. A brownfield airport is one which is already in existence.

Currently, Development Fee is charged from both outgoing and incoming domestic and international passengers at the Delhi airport.

Allowing DIAL to levy DF "vitiated the sanctity of bidding process" and led to undue benefit of Rs 3,415.35 crore to the private firm GMR, the CAG said. GMR Infrastructure holds 54% stake in DIAL.

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First Published: Aug 17 2012 | 6:31 PM IST

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