Delhi airport seeks development fee extension: report

Delhi airport seeks development fee extension: report

Mumbai: GMR Infra-controlled Delhi International Airport Ltd, is seeking an extension of the airport development fee (ADF), a proposal for which is pending with the Airports Economic Regulatory Authority, after banks refuse to lend further, two newspapers reported on Thursday.

A consortium of lenders led by ICICI Bank has refused to lend citing its inability to service debt through the current revenue model, Financial Chronicle reported.

“We are not in a position to raise any further equity because other members of our consortium have issues," Sidharth Kapur, GMR’s chief financial officer (airports), told DNA.

“The lenders are not comfortable about raising more debt since serviceability is seen an issue. So we are left with no option but to take the ADF route to bridge the gap in funding."

The company had originally started the project of modernising the Delhi airport with an outlay of 9000 crore but following changes in the design of the project, the cost shot up to 12,800 crore, DNA said.

GMR had then sought government’s permission to impose an ADF and was allowed to collect 200 from domestic passengers and 1,300 from international passengers for 36 months from 2009, which could raise 1,830 crore, it added.

The firm has already deployed Rs2,450 crore through equity and 5300 crore in debt at an average rate of about 11%, Kapur told the paper.

“More than the debt-equity issues, there would be stress on the balance sheet in case the equity or debt is further increased. We already have a high revenue share agreement at about 46%, with the government," he said.

For the year to March 2011, DIAL suffered a net loss of 240 crore on revenue of Rs 1,240 crore, the paper said, adding, GMR’s total losses from its airports business is 220 crore on a consolidated gross revenue of 3050 crore.

A company spokeswoman was not immediately available for a comment when contacted by Reuters.

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