Agreement on Delhi's T3 terminal stacked in favour of private operator
In a charge that is likely to heighten the war of words between the Opposition and the Congress, a draft report of the Comptroller and Auditor- General says the contents of a Cabinet note approved in 2003 were “omitted” by the government in April 2006 when the Operation Management Development Agreement (OMDA) for Delhi's T3 terminal was signed to suit the interests of the GMR-owned Delhi International Airport Limited (DIAL). These omissions are an example of an “undue favour” being given to the company, the draft report notes, and led to serious discrepancies in the government's final agreement with DIAL, which operates the terminal.
One of the issues the CAG examines is the absence of any provision in the OMDA for mutual agreement and fresh negotiations before an extension of the original concession period is granted.
Crucial omission
“The decision to adopt the joint venture route was taken based on the Cabinet note of September 2003. While seeking approval for restructuring the Delhi and Mumbai airports, this Cabinet note specifically envisaged an initial concession period of 30 years, which could be extended by another 30 years subject to mutual agreement and negotiation of terms. However, in the draft OMDA, which formed part of the bid documents, the important condition, ‘subject to mutual agreement and negotiation of terms,' was omitted.”
This was not only a violation of the commitment in the Cabinet note but also amounted to a unilateral and unfair advantage given to DIAL, which is detrimental to government interest. For, it does not give the government any scope for a review of any of the conditions, says the CAG.
The report says four critical elements that determine a concessional agreement in any public-private partnership of this type are: traffic volumes; tariffs; the concession period; and the capital cost. In the OMDA, the provisions of which regulate the development of the Indira Gandhi International Airport, the concession period has no trigger, indicating any linkage of any of these four elements. Neither the Ministry of Civil Aviation nor the Airports Authority of India could provide any evidence to indicate that these inputs were considered while fixing the 60-year concession period, the draft notes.
‘Sweeping provision’
“Such a sweeping provision, without any scope of review at any time during the currency of the concession period, has effectively granted DIAL the sole right to operate the airport for a period of sixty years with the terms and conditions frozen in the OMDA.” The audit could not find any infrastructure project, except the Delhi and Mumbai airports, wherein the concession period is initially for 30 years and can be extended for another 30 years at the sole option of the JVC and, that too, on identical terms and conditions.
In addition to the unilateral right to DIAL to manage the IGI Airport for 60 years, the State Support Agreement (SSA) allows it the Right of First Refusal with regard to a second airport planned within a 150-km radius of the IGI Airport.
Keywords: Delhi International Airport, T3 terminal, CAG draft report, GMR, Operation Management Development Agreement, NDA government, UPA government, Cabinet note
I request all readers of this article to make people around them, aware
of this congress 's corruption and help save this country from congress
!!! Please, please never vote for them and do vote for others !!
Mr. Kumar need not be very apprehensive of flight of FII. They come
because of the huge market potential in our country and not for any
supposed benavalence. As once Panditji said "Enlightened self interest
is the core of Free enterprise." They surely know this.
Remember the days where the airports were practically crumbling under the heavy
paseenger and traffic loads? Many Indian airports are now world-class on account of the
participation of the private sector. If GMR continues to do a great job of building and
operating the airports and of transforming air travel in India, I applaud that. Of course,
corruption should have no role to play here, and there is no excuse for that. On balance, the
government should set broad guidelines and regulations and get out of the business of air
travel. For a prime example of government failure, take a look at pitiable Air India. That
organization should simply not exist.
@kumar, if some one makes world class T3..are they granted to do any corruption ?
This is really amazing that everyday some scandal of the UPA govt. comes out . now
it is T3 airport od the Indian capital.It is really a mockery of the present democracy.
This govt. have failed on every corner but they are expert in bungling ,looting the
public money .our great P.M. who may called as Monui Baba is sitting and silently
watching all these acts .We do not know when this money plunders will be punished
as the all law makers are them selves corrupt.In order to show the honesty some are
arrested by Congree Bureau of Investigation (CBI )and then released on bail in order
to again start loot in the public money . Where this country is going ?Is there any
remedy to improve the situation?I think rules are for the fools only and the general
public is fool otherwise all these type of persons need a sharp punishment.
@Kumar - last sentence: Do you think foreign investors are so ignorant
that they are finding out about national plunder and endemic
corruption with impunity in India, for the first time, and only
through The Hindu reporting such news? Are you suggesting that The
Hindu should suppress news of alleged astronomical national plunders
and corruption from the citizens of India, so as not to alert the
gullible foreigners to such goings on in India? Do you not think it is
the duty of The Hindu to inform the citizens and try to uphold the
laws of the land, by at least reporting major breaches? Could your
recommendation not make it even easier for the looters to continue
looting?
The exchange rate problems are caused by poor economic management, AS
REPORTED IN FOREIGN NEWSPAPERS, not due to unpatriotic reporting by
The Hindu, as you think!
Is it compulsory that UPA needs to follow what NDA had adopted/ Please note GMR had completed a world class T3 in Delhi in a record time. All Indians need to be proud of this infrastructure. If CAG is pointing such issues and the NDA along with the MEDIA keeps highlighting only the negative aspects INDIAN RUPEE will touch 100 to a $ as all FII will take back their S from India.
Can enacting an effective Jan Lokpal be delayed any longer?
Unless alleged national plunders are investigated, prosecuted and
perpetrators punished, will the looters be ever deterred? (In addition,
of course, systemic preventative measures must be enacted urgently.)
Should the looters and their supporters be allowed to sweet talk the
citizens and continue to mislead them under various pretexts?
It is up to the citizens to decide!
Devils lies in the details. Even if CAG closely examine the contract
details of the toll plaza charging hefty amounts from public, then
another big scandal would come out. NHAI has given undue favors to the
contractors. Most of them are invisibly owned by politicians. Common man
is made to paid hefty amount. Where this country is moving!
We should give more powers to CAG to show cause the Govt under what pretext the scam was allowed to fructify and assign responsibility to person and put them in Jail, confiscate their properties.
Why is anyone surprised by this? It is ridiculous that this will rake up a storm for a couple of days but nothing further will happen. This UPA government has
institutionalized corruption like none before.
The fact is that GMR has created good Airports in India at Hyderabad and Delhi. He is bound to get astronomical anticipated returns due to a 'well prepared' agreement in his favour. For better aviation environment, all Indian airports under NAA must be handed over to GMR after 2014 elections. But before that GMR should ensure proper maintenance & upkeep of wash rooms in their airports.
The public does not even need any further proof that every action of this govt. has only favoured corporate big-shots and looted the public. Now they need "Aam Admi ki LAAT".
We just do not understand why this govt is not stopping the loot it's doing for so long time even after getting caught time and again.This is the tip of the iceberg. I am just wondering how many such misdeeds have been done by the govt which are unnoticed. It's a tough time for India and they are making it more tough; instead of saving us they are hell bound on sinking us. Scams all around, price arises all around, People's servants loot all around.
I do not find any reason for this governmet to continue. Every scam is an advantage to UPA to subside the previous one. Since no action takes place
This is PR disaster for GMR group, CAG report is out and Delhi
Daredevils have lost. How will they keep public indulged?
What should we do ? Our respected lawmakers are sitting in Parliament and discussing about CARTOONS while our Economy was getting in a worse conditions . No one bothered about that finally the Debacle of Rupee was there and that contributed in the rise of Petrol prizes now who should be held responsible for this. Now it's a known fact that Parliament runs under the Lobbyist. Whatever a capitalist company wants it can do in this country without facing any problem until and unless its loyal LOBBYIST are working for it. GMR , Telenor etc the list is so long.They all have got undue profit and law had been changed to provide benefit to them. So finally it can be concluded that lawmakers will make law to EXPLOIT this nation and its economy not to save it !
Now it will be quite interesting to watch that what happens to CAG who is exposing the govt day after day ... Will the lawmakers make some OTHER law to kill this whistle-blower organization or CAG will continue working independently.
Under the touch of Midas, every thing turned into gold. We would
welcome if the CAG had that kind of power. But what we are seeing to day is that on whatever he lays his hand, it is not a cheerful news that he brings to the public but only depressing scams, nothing but scams. Is there no end for it?
And this government,its head and the Head Honcho of the party leading the coalition all have the gall and temerity to shout from the roof-tops that they run a clean government and will fight corruption tooth and nail.The whole nation knows that their teeth have all fallen and their nails are all completely damaged by fungus.Corruption thy name is CONGRESS.
This dispensation has forfeited its mandate to rule and needs to go.
It is also for such contingencies that the people need the right to recall their representatives who,presently,once voted in,care a
tuppence for the voter.
How much money changed hands in this deal is what we are interested to know. By the time we unearth one scandal after the other the money are safely transferred and that is why Pranab and PM now shouts from housetop about the money laundering or the lack of it.
The losses India has suffered due to the corruption and shameless looting by the Congress makes one wonder, whether they were expecting the country to shut down before their term was over. If they loose the 2014 elections, some individuals are going to face some very difficult questions.
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