New Delhi: Questioning the advance that GMR Group is seeking from commercial developers for space at the Delhi Airport, the government has sought legal opinion on the funding structure for the Rs 9,000 crore modernisation plan.

The Civil Aviation Ministry has approached the Law Ministry on the Rs 50 crore per acre sought by GMR-led Delhi International Airport Private Ltd (DIAL) for 45 acre of commercial space as 8-10 per cent lease rental, a move aimed at raising Rs 2,250 crore. When contacted, ministry sources confirmed the move while indicating reservation on the quantum of advance that could come in the way of higher rental.

The issue, if not cleared at the earliest could impact the financial closure of the project targeted to be completed ahead of Commonwealth Games in 2010. When contacted, a spokesperson for GMR said it has asked for clearance of the master plan as also the funding structure which is as per Operation, Management and Development Agreement, a deal document signed between Airports Authority of India (AAI) and GMR for the project that would scale up the airport's capacity to handle 35 million passengers a year.

The AAI, which is also 26 per cent partner in the project, has contested the demand for deposits saying its adjustment later into the rental will cut into DIAL's revenue. The Ministry's move follows a letter by DIAL for expediting clearance of the master plan for financial closure for the project, where the group has already invested about Rs 1,100 crore on its own to ensure that the deadline in met.

GMR contends that the collection of the refundable security deposits is an acceptable commercial practice to ensure that developers of properties like hotels and malls meet their promises of completing the project and pay the lease rentals.

Source : PTI