Fraport looks to exit Delhi International Airport venture

New Delhi, Feb 28: Germany's Fraport is looking to sell its entire stake in DIAL, a joint venture that operates the Indira Gandhi International Airport in the national capital.

Fraport holds 10 per cent shareholding in Delhi International Airport Ltd (DIAL), a three-way joint venture where the majority is held by diversified group GMR Infrastructure.

According to a source, Fraport is looking to exit from the DIAL amid concerns that it was not getting returns on investment as expected. Specific details about the plan of the German entity, which operates Frankfurt airport, could not be ascertained.

When contacted, a Fraport AG spokesperson said, "It is not our policy to comment on speculation regarding our business partnerships".

A DIAL spokesperson said it does not wish to comment. Currently, GMR holds 64 per cent in the airport venture while Fraport has 10 per cent and the remaining 26 per cent shareholding is with the Airports Authority of India (AAI).

Early last year, Malaysia Airports (Mauritius) Pvt Ltd exited the joint venture by selling its entire 10 per cent stake to GMR Airports, a subsidiary of GMR Infrastructure. MAMPL is a subsidiary of Malaysia Airports Holdings Berhad (MABH).

One of the largest in the country, Delhi airport handled 46 million passengers in 2015. The GMR-led consortium was awarded the concession to operate, manage and develop the Indira Gandhi International Airport here in January 2006.

It inked the Operations, Management and Development Agreement (OMDA) in April, 2006. DIAL is a special purpose vehicle formed to carry out development, operation and management of the Delhi airport. Meanwhile, AAI has sought documents from its joint venture partners for an audit of the books of accounts of the Delhi airport by CAG.

AAI has invoked its right under a particular clause of the OMDA while asking the Comptroller and Auditor General of India to audit the books of DIAL.

The national airports operator, AAI ceded control of the Delhi airport under a public-private partnership agreement in 2006.

As per that pact, DIAL has to share 45.99 per cent of its revenue with AAI every year.

PTI