CAG report pulls GMR stock lower

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CAG report pulls GMR stock lower
The shares of the GMR plunged 4% on the Comptroller and Auditor General's (CAG) reports on allocation of coal blocks, power and GMR-run Delhi Airport.

As per CAG report on public-private partnership for the Indira Gandhi International Airport had reportedly said that Delhi International Airport (DIAL), has a potential to earn Rs 1,63,557 crore over a 60-year period from the land given to it on a lease rent of Rs 100 per annum, hurting the interest of the government.

The report also said that 239 acres of land for construction of the terminal was given away to GMR Group owned Delhi International Airport Limited (DIAL) on lease as against the market rate of Rs 24000 crore rupees.

Further, it has questioned role of the then Civil Aviation Minister, Praful Patel for favouring GMR that received undue benefits worth Rs 3,400 crore.

It has slammed the levy of development fee on passengers at Delhi Airport (DIAL), stating it vitiated sanctity of bidding process.

The shares of the company was lower by 3.54% at Rs 20.50 on NSE at 2.15 pm IST.

GMR Group is one of the fastest growing infrastructure enterprises in the country with interests in Airports, Energy, Highways and Urban Infrastructure sectors. Employing the Public Private Partnership model, the Group has successfully implemented several iconic infrastructure projects in India. 

In January 2006, the consortium was awarded the concession to operate, manage and develop the IGI Airport following an international competitive bidding process. DIAL entered in to Operations, Management and Development Agreement (OMDA) on April 4, 2006 with the AAI. The initial term of the concession is 30 years extendable by a further 30 years

As per report, 44 billion tonnes of coal was given at very low price, while 194 coal blacks were allocated on recommendations.

GoodReturns.in

Read more about: gmr
Story first published: Friday, August 17, 2012, 14:20 [IST]
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