Ministry, Airport Authority of India deny auditor-general's findings

INDIA's Comptroller and Auditor General's (CAG) allegations of discrepancies in contract procedures for Delhi airport to Delhi International Airport Ltd (DIAL) have been denied by the civil aviation ministry and the Airports Authority of India as well as the company, a GMR Group-led consortium.

"In the draft Operations, maintenance and development agreement, the important condition subject to mutual agreement and negotiations of terms was omitted," said the auditor general's office.

But DIAL said all the terms and conditions in the bid document were reviewed by the Empowered Group of Ministers from December 2005 to January 2006 and approved by the cabinet, reports the Indian Express.

In its report, the auditor general pointed out that the potential earnings from land leased to DIAL by AAI for 58 years amounted to INR1.6 trillion (US$28.9 billion).

Countering the allegation, the accused entities said: "It is unrealistic to assume that the entire area for commercial usage can be monetised in a short-term. In fact, as per estimates, it may take 20 to 25 years to completely develop this land. Thereby the calculation is erroneous."