u2026. Economic slowdown also hits Delhi airport modernisation

Like its counterpart in Mumbai, the modernisation of the Delhi international airport has hit a roadblock due to the global economic crisis. The Delhi International Airport Limited (DIAL), which has undertaken the project, is facing a shortfall of Rs 3,000 crore for the first phase of the project, which is to be completed by 2010, in time for the Commonwealth Games.

The first phase has an estimated cost of Rs 8,990 crore. DIAL has reportedly conveyed to the civil aviation ministry that resources may dry up in the next few months.

The problem started when a proposal to raise Rs 3,000 crore from realtors was stalled by government in 2007. It was cleared in 2008, but by then realty prices had gone down due to the economic slowdown. As per new estimates, DIAL will now be able to raise only Rs 1,500 crore from realtors, said DIAL sources.

The Airport Authority of India, which has a 26 per cent stake in the project, also expressed its inability to fund the shortfall, as it had made a hefty payment for the modernisation of Kolkata and Chennai airports, revealed official sources.

In its third and latest proposal, sent in November 2008, DIAL had asked the government to allow imposition of an airport development fee Rs 200-300 and Rs 1,000 on each outgoing domestic and international passenger, respectivelyu00a0from January 1. But the request was turned down.

DIAL officials refused to comment over the development, but a Civil Aviation Ministry official said, "We are considering the proposals submitted by DIAL and will soon take a decision."