Bangalore: Burdened by rising air fares, passengers at the Bengaluru International Airport (BIA) could be in for a hefty hike in User Development Fee (UDF).
But even if a Wednesday notification by the Airports Economic Regulatory Authority of India (AERA) for a fresh consultation paper offers a temporary reprieve, the air commuters would eventually end up paying for the BIAL’s inability to raise revenue from the vast real estate adjoining the airport.
Two years before the airport construction took off, the Bangalore International Airport Limited (BIAL) had taken possession of 4,008 acres of land on concessional rental terms from the State government. Besides the runway, terminal and other airport infrastructure, a big chunk of this land -- valued then at Rs 175 crore -- was earmarked for real estate that could eventually generate big ticket revenue for the shareholders. But, as airport infrastructure experts point out, the land remained largely undeveloped in the last five years.
26/09/13 Rasheed Kappan/Deccan Herald
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But even if a Wednesday notification by the Airports Economic Regulatory Authority of India (AERA) for a fresh consultation paper offers a temporary reprieve, the air commuters would eventually end up paying for the BIAL’s inability to raise revenue from the vast real estate adjoining the airport.
Two years before the airport construction took off, the Bangalore International Airport Limited (BIAL) had taken possession of 4,008 acres of land on concessional rental terms from the State government. Besides the runway, terminal and other airport infrastructure, a big chunk of this land -- valued then at Rs 175 crore -- was earmarked for real estate that could eventually generate big ticket revenue for the shareholders. But, as airport infrastructure experts point out, the land remained largely undeveloped in the last five years.
26/09/13 Rasheed Kappan/Deccan Herald
