Saturday, March 22, 2008

A passenger fee for new Delhi airport?

New Delhi: Will outbound travellers in Delhi also have to pay a user development fee (UDF) when the new integrated terminal opens in 2010, like people flying out of new airports in Hyderabad and Bangalore? This question is now haunting authorities here as the prolonged controversy over funding model of Rs 8,900-crore project is feared to be leading to a situation, where a fee may be levied on passengers. UDF is levied to meet the gap between loan liability and revenue expected from a project.
The GMR-backed Delhi International Airport (P) Ltd (DIAL) had initially proposed to have a hospitality district over 45 acres by charging security deposits from successful bidders. Combined levies on this district were to raise Rs 2,835 crore but government rejected this model as the developer was not sharing 45.9% security deposit with the Airport Authority of India as per the privatisation agreement.
So, hunt for an alternate funding model was on.
22/03/08 Saurabh Sinha/Times of India
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