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Domestic passengers to pay user fee in B’lore

The Civil Aviation ministry today gave the green signal to the Bangalore Airport to levy a User Development Fee (UDF) of Rs 260 for domestic passengers departing from the airport...

New Delhi | Published: January 13, 2009 1:28:04 am

The Civil Aviation ministry today gave the green signal to the Bangalore Airport to levy a User Development Fee (UDF) of Rs 260 for domestic passengers departing from the airport,beginning January 16. The airport already charges Rs 1,070 as UDF from international passengers.

With the imposition of UDF,the Bangalore Airport is likely to earn an additional revenue of around Rs 150-200 crore per annum,experts said. Bengaluru International Airport Limited (BIAL),the Siemens-led consortium that is operating the Bangalore airport,had initially proposed Rs 675 from domestic passengers and Rs 995 from international passengers,which was rejected by the civil aviation ministry.

The UDF receipt can be obtained at the counters located in front of the departure hall of the terminal building at the Bangalore airport. The proceeds from UDF are deposited with the airport developer,with a pre-determined percentage being pocketed by the Airports Authority of India. The airport has a capacity to handle 12 million passengers annually. The project cost of the airport is Rs 2,273 crore. Last year,the greenfield Hyderabad airport was allowed to levy Rs 375 as UDF from domestic passengers and Rs 1,000 from international passengers.

Next in line for demanding imposition of UDF are Delhi International Airport Limited and Mumbai International Airport Limited,which have expressed a shortfall of around Rs 2,000 crore each in the development of projects worth Rs 8,890 crore and Rs 9,800 crore,respectively,to the civil aviation ministry.

For both airports,the gap in the equity structure due to various reasons,including a bleak response to the real estate project,has dissuaded banks to disburse them further loans to fund the project. The proposal to this effect is already under consideration of the ministry.

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