Financial manoeuvring hurts DIAL and AAI

In his weekly column "Rational Expectations", Sunil Jain has written an excellent article titled "Mr. 20 per cent" highlighting the financial shenanigans played by the operator of Indira Gandhi International Airport, GMR promoted Delhi International Airport Limited (DIAL), and the resultant negative impact not just on Airports Authority of India (AAI), but also on DIAL itself.

His postscript says it all

If DIAL hadn’t tried to shortchange AAI and had its plans thwarted last year, it could have given 46 per cent of the deposits to AAI and still kept Rs 9,500 crore (54 per cent of Rs 17,590 crore) — if prices fall by half now, it gets to keep just Rs 4,475 crore! Playing by the book helps.

It is important to remember, the owners of GMR are rumoured to be "close" to various politicians of the ruling United Progressive Alliance, as well as the Ministry of Civil Aviation, the parent of AAI.

Read the full article.