The Ministry of Civil Aviation has refuted the loss figures and other allegations made in the report of the CAG on Indira Gandhi International Airport, Delhi which was tabled in Parliament today. The Ministry in its statement has said that the calculation of presumptive gain from the commercial use of land at the Delhi Airport is totally erroneous and misleading as it simply adds the nominal value of the projected revenue, without taking the net present value.

It said, the net present value of the figure quoted by CAG is 13 thousand 795 crores rupees only. CAG has further failed to appreciate that 46 per cent of this amount would be payable to Airports Authority of India – AAI as revenue share.

On the issue of lease of Airport land, Ministry has clarified that the land has not been given to DIAL on rental basis. 100 rupees is just a token amount for the purpose of the Conveyance Deed. The determining factor for grant of concession to the bidder was the Gross Revenue share quoted by the bidders. As a result, Airports Authority of India (AAI) now receives 45.99 percent share of Gross Revenues of DIAL and 26 percent of all Dividends. Benefit to AAI is likely to be more than 3 lakh crores rupees in this process during the entire Concession period. The Ministry has further said that all decisions including the entire bidding process and the approval of the Operation Management and Development Agreement, was monitored by EGoM and subsequently approved by the Union Cabinet. The bidding process has also been upheld by the Supreme Court. It said, all Aeronautical and Airport assets created by DIAL will be transferred back to AAI as per agreement at the end of the concession period.