GMR Infrastructure, is the leading firm in the joint venture consortium that runs Delhi International Airport Limited (DIAL). The consortium consists of GMR Group (54%), Airports Authority of India (26%), Fraport & Eraman Malaysia (10% each).
The problems comes derived from a report of the Comptroller and Auditor General (CAG) of India. In the mentioned report the CAG criticises the terms under which Delhi airport was privatised in 2005 on the ground that they were skewed in favour of the GMR-led consortium.
The CAG report states that provisions for operationalising the PPP to develop the Delhi International airport were “more skewed in the favour of the concessionaire.” This concusion is derived on the ground that land was transferred to the GMR-led consortium for a meagre consideration.
But its conclusions have drawn strong rebuttals from GMR and the civil aviation ministry. Both entities argue that the process of choosing a private partner had been cleared by the cabinet and subsequently upheld by the Supreme Court. The civil aviation ministry has backed GMR’s analysis of the CAG report.
The answer prepared by GMR clarifies most of the points questioned in the CAG report. But GMR is also very ‘sad’ about all the comments stated by the general press. This is always a point with PPP contracts, which are difficult to understand for the not specialized press.