Delhi airport set to charge development fee from Decemberhttps://indianexpress.com/article/news-archive/web/delhi-airport-set-to-charge-development-fee-from-december/

Delhi airport set to charge development fee from December

Passengers flying from Delhi airport will have to shell out more from December 1 onwards as airports’ regulator in its latest order allowed the airport

Passengers flying from Delhi airport will have to shell out more from December 1 onwards as airports’ regulator in its latest order allowed the airport to continue to levy development fee (DF),at the earlier level,from December 1,2011,as per a latest order of the airports’ regulator.

The Airports Economic Regulatory Authority,in its order passed Monday,has allowed the Delhi International Airport Ltd (DIAL) to charge Rs 200 and Rs 1,300 from domestic and international passenger respectively till May,2013 — enhancing the deadline by over a year.

According to the November 14 order,DF would help the airport to bridge the funding gap of Rs 1,230.27 crores,which has been enhanced after the latest final project cost estimates submitted by the airport and vetted by an independent auditor. The order noted that the time duration for the levy may be extended beyond 2013 after some of the costs,which have not been incurred so far and therefore excluded in the final cost estimates,are incurred till May 2013.

“The authority will review the monthly collections on the basis of audited figures provided by the AAI (Airports Authority of India) and DIAL and take appropriate decisions as may be required,based on such review,” the order said.

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In the final project cost provided by DIAL after it failed to meet two deadlines,the GMR-led operator pegged the total cost of modernising Delhi airport at Rs 12,857 against Rs 8,957 crore projected to civil aviation ministry in 2009 on basis of which DF was calculated.

In its proposal to the regulator,DIAL said since the funding gap had also increased to Rs 3,620 crore,it should be allowed to charge levy for additional period of 32 months beyond three years allowed by the government originally.

However,in its final order,the regulator brought down the funding gap to Rs 1,230 crore.