Delhi Intl Airport seeks airport devt fee extension: Report

GMR Infra-controlled Delhi International Airport Ltd, is seeking an extension of the airport development fee (ADF), a proposal for which is pending with the Airports Economic Regulatory Authority, after banks refuse to lend further, two newspapers reported on Thursday.

A consortium of lenders led by ICICI Bank has refused to lend citing its inability to service debt through the current revenue model, Financial Chronicle reported.

"We are not in a position to raise any further equity because other members of our consortium have issues," Sidharth Kapur, GMR's chief financial officer (airports), told DNA.

"The lenders are not comfortable about raising more debt since serviceability is seen an issue. So we are left with no option but to take the ADF route to bridge the gap in funding."

The company had originally started the project of modernising the Delhi airport with an outlay of Rs. 9000 crores but following changes in the design of the project, the cost shot up to Rs. 12800 crores, DNA said.

GMR had then sought government's permission to impose an ADF and was allowed to collect Rs. 200 from domestic passengers and Rs. 1300 from international passengers for 36 months from 2009, which could raise Rs. 1830 rupees, it added.

The firm has already deployed Rs. 2450 crores through equity and Rs. 5300 crores rupees in debt at an average rate of about 11%, Kapur told the paper.

"More than the debt-equity issues, there would be stress on the balance sheet in case the equity or debt is further increased. We already have a high revenue share agreement at about 46% with the government," he said.

For the year to March 2011, DIAL suffered a net loss of Rs. 240 crores on revenue of Rs. 1240 crores, the paper said, adding, GMR's total losses from its airports business is Rs. 220 crores on a consolidated gross revenue of Rs. 3050 crores.

A company spokeswoman was not immediately available for a comment when contacted by Reuters.