Govt may go for airport development fee

New Delhi: Passengers flying out of Delhi may soon have to pay an additional charge to fund the IGI modernisation plan that has hit a revenue roadblock. The government has asked the law ministry to have a relook at airport development fee (ADF) proposal, sought by the GMR-backed Delhi International Airport Pvt Ltd (DIAL).
Earlier, the ministry has decided against levying any such fee. But the government has sent the proposal for reconsideration as the modernisation plan is facing a funding shortfall of around Rs 3,000 crore.
DIAL had sought to levy an ADF of Rs 200-300 and Rs 1,000 on each outgoing domestic and international passenger respectively from January 1. "Among the other options to fill the gap was by putting in more equity. But the Airports Authority of India, 26% stakeholder in DIAL, expressed inability in doing so as it had made a hefty down payment for the Kolkata and Chennai modernisation plans," said an official.
The GMR-backed consortia has warned the government that it had arranged nearly Rs 4,800 crore for the Rs 8,900-crore modernisation plan and this money will exhaust in 45 days. It gave options like ADF or long-term soft loan from government as the two ways of bridging the gap.
An ADF in Delhi could set a precedence for other airports. If GMR is allowed an ADF, GVK-backed MIAL may also demand a similar fee for Mumbai airport modernisation, aviation experts said.
Phase-one of Delhi airport's modernisation plan has a tight deadline of getting ready in time for the 2010 Commonwealth Games. DIAL's warning that its work would come to a standstill in 45 days if further funding is not arranged for has sent alarm bells ringing in the government.
23/12/08 Saurabh Sinha/Times of India

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Categories: Airports Dec 2008