Where DIAL is concerned, it will not only submit the final project cost estimates which will be audited by an independent auditor, but will also undertake a review of the bidding process for the planned hospitality district latest by August 31 this year. The hospitality district has been planned as an area where a number of hotels will come up in the vicinity of the airport.

“The final determination of levy of development fee may be made by the Government/regulator on compliance of the two milestones,” an official statement adds.

DIAL, which is undertaking the modernisation, upgradation and development of Delhi airport had estimated that it will be implemented at a cost of Rs 8,975 crore. The requisite funds were to be raised through rupee term loan, external commercial borrowings, base equity and refundable security deposits (RSD) from the hospitality district.

“It has now been brought to the notice of the Government that DIAL is unable to raise RSD to the extent anticipated and a substantial shortfall is expected. It has also been stated that the lenders have not agreed to extend any further debt as the existing debt arrangement takes into account all possible revenue streams and have suggested that levy in the nature of capital receipts to leverage any additional debt,” the official statement points out.

Besides, with the shareholders being unable to take additional equity exposure and decline in air traffic impacting the DIAL’s Debt Service Coverage Ratio, the levy is required.

Meanwhile, it has been decided that the development fee receipts will be deposited in a separate escrow account. The Airports Authority of India (AAI) and the Central Government will have supervising powers about the escrow account to ensure that all receipts are properly accounted for and utilised only for permitted purposes. “These powers may include stoppage of withdrawals by DIAL.”

GMR Infrastructure’s Rs 2 shares closed 11.5 per cent up on the NSE on Monday at Rs 82.50.