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DIAL sends out RFPs for second cargo terminal,upgrading facilities

Even as the first phase of modernisation plans of Delhi Airport have hit financial hurdles,the GMR group-led Delhi International Airport Limited...

Written by Smita Aggarwal | New Delhi | Published: January 23, 2009 1:02:34 am

Even as the first phase of modernisation plans of Delhi Airport have hit financial hurdles,the GMR group-led Delhi International Airport Limited (DIAL) has set the ball rolling for expansion of cargo facilities at the international airport.

It has sent out a request for proposals (RFP) notice for the construction of the airport’s second cargo terminal and upgradation of existing facilities. The proposals have been sought from players in the cargo handling business to design,develop,finance,build and operate the new terminal for a 25-year concession period. In addition,separate proposals are being invited for the upgradation of the existing cargo facility.

The commissioning of work on the new cargo terminal is part of the estimated Rs-8,000 crore modernisation plan of Delhi airport. It is also likely to pave the way for the developer to get clearance from the civil aviation ministry to levy an airport development fee (ADF) on departing passengers,a proposal for which is already under the consideration of the ministry.

According to the operations management development agreement (OMDA) signed in April 2006 and the state support agreement (SSA),the Delhi airport had been allowed to increase aeronautical charges,which include charges like ADF,after two years of airport modernisation if they complete and commission mandatory capital projects in that period.

However,this incentive shall not be available to the joint venture company (JVC) for purposes of calculating aeronautical charges for the third year after the effective date,the agreement said.

A DIAL official told The Indian Express that revenues from cargo operations do not form a substantial part of the overall revenues. However,with commencement of this terminal,the contribution may go up,he said. The proposed terminal would be spread over 70,000 square metre,to be equipped with the latest handling and processing facilities. The existing terminal,one of the busiest cargo facilities in India,is also spread over 70,000 square metre. Last year,the cargo traffic from the Delhi airport was 4,00,000 metric tonne and has been growing at 10 per cent compounded growth annually for the last four years.

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