Delhi airport fees may rise 5-fold as aviation ministry proposes for higher return on equity

New Delhi:The aviation ministry has recommended a higher return on equity than the sector regulator for the GMR-led consortium that runs Delhi's international airport, which could help the loss-making private developer shore up revenues faster.
The ministry has recommended 18-20% return on equity, proposing a four to five-fold increase in airport charges, while the Delhi International Airport Ltd (DIAL) had sought 24% returns.
The ministry's proposal is, however, higher than the 16% returns and three-fold rise in tariffs recommended by the Airports Economic Regulatory Authority (AERA) in a consultation paper floated in January. "The aviation ministry is understood to have recommended 18-20% RoE, subject to a few conditions," a senior government official told ET.
The recommendation, if accepted, will result in almost five-fold revision of airport charges, which are currently being reviewed by the AERA.
02/03/12 Anindya Upadhyay/Economic Times

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Categories: airports Mar 2012