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Resource Center
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GMR Seeks To Extend Airport Land Intended For Hotels For Commercial Use
November 16, 2011
 
GMR Seeks To Extend Airport Land Intended For Hotels For Commercial Use


http://www.hospitalitybizindia.com/detailNews.aspx?aid=12176&sid=6

16 November 2011

Mumbai:
GMR Infrastructure led-Delhi International Airport Ltd (DIAL) is set to approach  Government of India to expand the permitted land of 250 acres at the airport for commercial use. The company wants to lease out the land for non-airport related activities such as educational institutes, medical tourism, shopping malls, commercial office complexes and theme parks.

At present, this land - amounting to five per cent of the 5,000 acres earmarked for the capital's airport expansion - can only be used for setting up 'airport-related commercial activities' such as hotels and warehousing, as per the operation, maintenance and development agreement (OMDA) signed between the government and DIAL in April 2006.

According to an senior DIAL official, there are already 11 hotels coming up on the 45 acres tapped thus far. “How many more hotels can be built ? Though there is no formal request, the land use issues are under discussion. indicating it won't be easy to monetise the balance 205 acres without a change in land use in the long-term,” said the official.

According to a report in The Economic Times, GMR Group holds a 54 per cent stake in DIAL, Airport Authority of India (AAI) holds 26 per cent while Frankfurt and Malaysia Airports own 10 per cent each. An official proposal to the Ministry of Civil Aviation, Government of India stated that talks have already begun on the issue. A senior official close to the development stated that the aviation ministry has approached Goolam E Vahanvati, Attorney General and the government's top legal officer. A senior AAI official informed that commercial use of land for different purposes is in-built in the master plan, so they can not deviate from it.