The long-delayed revision of charges involving the Delhi airport seems to be caught in a departmental crossfire.
While Delhi International Airport (DIAL) wants a 774% hike, the Airport Economic Regulatory Authority’s (Aera) prescription stands at 334%.
But going by all indications, the final figure may come in somewhere between these two.
This is so because different sets of assumptions could be taken into consideration to determine the fee adjustment for the airport operator, which is already losing revenues as tariff revision is way behind schedule.
Yashwant S Bhave, chairperson of Aera, told DNA Money if the view of SBI Capital Markets, which has conducted a study on fee revision on return on equity of 18.5-20.5%, is considered, then the hike in charges would be higher than 334%.
Aera had assumed a 16% return on equity for arriving at the airport charges, while DIAL has taken 24%.
The two also differ on the traffic growth over 10 years at the Delhi airport while working out the increase in the fee structure. Aera’s traffic growth numbers are much higher than DIAL’s. This could again push up the percentage hike proposed by the airport regulator.
02/04/12 Praveena Sharma/Daily News & Analysis
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