Sunday, July 15, 2018

‘KIA has collected excess user development fee for 2 years’

Bengaluru: A majority of stakeholders who provided their feedback on the massive cut proposed by Airports Economic Regulatory of India (AERA) in User Development Fee (UDF) for departing passengers collected at KIA have backed it solidly. However, the state government, BIAL, majority stakeholder Fairfax Private Holdings Ltd and Association of Private Airport Operators, have opposed the move.
AERA on Friday made public all responses it received on its website for the UDF proposed on May 29, for the control period 2016-2021 (see box).
The state government has batted for the continuation of the existing tariff bearing in mind the airport’s expansion plans. In the consultation paper submitted by Sandeep Dave, Additional Chief Secretary, State Infrastructure Development department, said AERA’s stand on tariff determination “might have an adverse impact on the timely completion of the expansion projects of BIAL”.It states the excess revenues collected as UDF can be used for the next control period (2021-2026) when higher tariffs on passengers are expected due to higher capitalisation.
15/07/18 New Indian Express