Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

Ministry of Civil Aviation

Rajya Ssabha
UNSTARRED QUESTION
NO.: 132 TO BE ANSWERED ON 27/07/2010
Loss Suffered by AAI

 

132. SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of CIVIL AVIATION be pleased to state:

(a) whether the Airports Authority of India (AAI) has sought compensation from Government for revenue loss suffered due to closure of commercial operations at Hyderabad and Bangalore;

(b).whether Government had earlier refused to issue Rs. 5000 crore worth of tax free bonds to help AAI to meet its shortfall in revenue; and

(c) if so, the reasons therefor?

ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL AVIATION
(SHRI PRAFUL PATEL)

(a)Yes, Sir. Airports Authority of India (AAI) has requested the Ministry of Civil Aviation (MoCA),

to pass on to AAI, the Concession FEE expected to accrue to the Government of India in terms of Concession Agreements executed by AAI with the two private airport operators, so as to compensate it for the revenue loss to some extent.

(b) & (c) Yes, Sir. Ministry of Finance had not agreed to the proposal of Airports Authority of India to allow them to raise Rs. 4000 Crores through Tax Free Bonds and Rs. 1500 Crores through Capital Gains Exemption Bonds for the reasons that total funds available for investment in Capital Gains Bonds are limited, and an additional player in the market would essentially lead to competitive increase in the cost of harrowing, both in terms of interest rate offered and the cost of marketing these Bonds.