CAG on aviation: Govt favoured GMR, caused losses
Posted on: 01:42 PM IST Aug 17, 2012
New Delhi: The CAG report on the Delhi airport said that the decision by the Civil Aviation Ministry to award the contract for the Delhi airport to GMR caused humongous losses to the tax payers and passengers. It said that land was given to the company at much lower rates than even to government organisations like the DGCA and the BCA.
The CAG has pegged the losses at about Rs 3750 crore. These were losses incurred during the tenure of Praful Patel as Civil Aviation Minister.
The report also blamed the Airport Authority of India for acting against the interests of the government.
It said that Delhi airport operator DIAL benefited to the tune of Rs 3400 crore by levying development fee from the passengers. However, this fee was in violation of the bidding process, the CAG added in its report.