The Civil Aviation Ministry today told the Public Accounts Committee that there was no substance in the CAG report on the implementation of public-private partnership in the Delhi International Airport Ltd (DIAL). However, the auditor, which also made a presentation before the Committee, stood by its report.

Civil Aviation Secretary K. N. Srivastava faced “tough” questions from the members, particularly those of the Opposition parties. The key question was on the permit given to DIAL to use 5 per cent of the 4,608 acres leased to it in September 2003 for commercial use.

The members asked the Secretary to explain the rationale behind fixing a one-time fee of Rs 6.19 crore for using 240 acres for commercial purposes.

The auditor, represented by Deputy CAG A. K. Patnaik, also pointed out that the private developer was “hugely benefited” by fixing such a low amount for 240 acres in the Capital.

Members belonging to Opposition parties told Business Line that they were not happy with the Aviation Secretary’s explanation that the amount was calculated based on the Airport Authority of India’s “upfront” revenues from the land. Most Congress members remained silent, choosing not to questions either the CAG or the Secretary.

Another issue that came up for discussion was on the development fee. The members asked why the provision for collecting development fee was not included during the bidding process. The Secretary is learnt to have told the panel that collection of development fee was allowed under Section 22 (A) of Airport Authority of India Act, 1994 and the bidders had prior knowledge about it. He also pointed out that the collection of levy had been upheld by the Supreme Court.

The discussions were inconclusive. The panel, led by BJP leader, Murli Manohar Joshi, is likely to summon the Secretary again soon.

> jigeesh.am@thehindu.co.in

Related Topics