Aerospace Diary

Posted by- Neelam Mathews Aug 10, 2012 The note below was sent out by DIAL clarifying issues pointed out in the media. Allegation: ... DIAL got the airport modernization project for 60 years with an earning potential of Rs. 1,63,557 Crores DIAL says- • The number of Rs. 681.63 Crore per acre indicated by DIAL was the sum total of the lease rental that could be generated  through license fee over a period of 58 years and 45.99% of these earnings were to be passed on to AAI ‒ (Rs. 681.63 Crore per acre is calculated by taking the sum total of lease rental over 58 years @ Rs. 1.58 Crore per acre p.a., and an average escalation of 5.8% p.a.) Also, it is unrealistic to assume that the entire area for commercial usage can be monetized in a short-term. In fact, as per estimates it may take 20-25 years to completely develop this land – thereby the calculation of Rs. 1,63,557 Crore is  erroneous • Notwithstanding the above points, the allocation ...

By Neelam Mathews Photo courtesy of RAHI Issues surrounding compensation to landowners are delaying work on regional airports and other infrastructure. Land acquisition issues appear to be a growing factor in the delay of millions of dollars of infrastructure and industrial projects in India. Officials are pushing new legislation to boost compensation to landowners, but concerns over cost impacts may keep the provisions bottled up in the country's parliament. A recent study by the Ministry of Statistics and Program Implementation says the proportion of federal projects running behind schedule increased to over 53% in December 2010 from 34% in March 2007. Further, while environmental and funding issues remain major obstacles, procuring land is becoming a key challenge for more projects. India 's plan to boost the number of regional airports to nearly 500 from 130 by 2025 is running into the problem of land acquisition. One regional operator, Regional Airport Holding Int...