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The Public Accounts Committee of Parliament has unanimously adopted its draft report on the implementation of Public Private Partnership-Indira Gandhi International Airport, Delhi.
The PAC draft, as reported by Business Line on Thursday, deplored the Government for allowing the private partner to garner post contractual benefits in contravention of the provisions of the Operation Management Development Agreement.
Sources in the panel said majority of the members supported the demand for a thorough probe into the drafting of the OMDA and its implementation.
The panel, which examined the subject in depth, heard the representatives of the Civil Aviation Ministry, Airports Authority of India, DIAL and GMR during its sittings that took almost two years.
The panel has found that there are conflicts between the OMDA and the Airports Economic Regulatory Authority of India (AERA) Act.
It criticised the Centre for allowing the private partner to treat ground handling service and cargo handling service as non-aeronautical services. The panel has asked the Ministry the details of the financial impact on the exchequer by this concession.
The 22-member PAC, headed by veteran Bharatiya Janata Party leader Murli Manohar Joshi, also questioned the “unilateral right” of DIAL to extend the concession period for 30 more years and manage the airport for 60 years. “The Committee would like to know how this joint venture would pave the way for future airport development and modernisation in this country,” the report wondered.
In a demand that could lead to major revelations, the PAC has asked the Centre to furnish the total earnings of the DIAL and the revenue earned by the Government to infer “whether public interest was substantially sub-served” by reaching in a negotiated settlement with the DIAL.
It has also demanded the details of total revenue earned by the Airports Authority of India from DIAL after taking over the Delhi airport and also the projected revenue share in the next three years.
Sources in the PAC indicated that this recommendation will give a free hand to the Comptroller and Auditor General to audit the revenues of DIAL.
The committee attacked the Centre for allowing the private developer to charge a development fee from the passengers in contravention of the provisions of OMDA. It has expressed concern over the absence of proper land records of the land of the airport and said public land was transferred to DIAL without any proper physical survey.
The report will be tabled in Parliament next week. The stand on the Ministry on the report will also be submitted to Parliament as Action Taken Report at a later stage.
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