To help the GMR-led consortium over its running costs to modernise Delhi's IGI Airport, passengers will have to pay a development fee of Rs 200 for domestic flights and Rs 1,300 for international travel from March 1 over and above their ticket costs.
The development fee, which is being levied 'purely on an ad hoc basis,' would be applicable for 36 months only, an official spokesperson said, adding it would be inclusive of all applicable taxes. It is expected to cover an estimated shortfall of Rs 1,827 crore (Rs 18.27 billion).
The GMR-led Delhi International Airport Ltd would collect the amount, deposit it in a separate escrow account and use the fund for developing aeronautical assets only, under the supervision of the civil aviation ministry and the Airports Authority of India.
DIAL becomes the first airport operator in the country to levy such a fee to be collected on a temporary basis. The government has so far approved user development fee for new airports in Hyderabad and Bangalore, which is of a permanent nature.
The levy, to be reviewed after six months, comes in the wake of DIAL informing the Civil Aviation Ministry that it expected a 'substantial shortfall' in implementing the Rs 8,975 crore (Rs 89.75 billion).
Facing an estimated shortfall of Rs 1,827 crore (Rs 18.27 billion), DIAL reported to the government that it was unable to raise refundable security deposits from the market and that the lenders have not agreed to extend any further debt. It was also a problem for the shareholders to infuse additional equity beyond Rs 1,200 crore (Rs 12 billion), which they had already put in, the DIAL said. Added to this was the declining air traffic, which adversely impacted the revenue streams of the DIAL.
Keeping all this in mind, DIAL had proposed to the civil aviation ministry that it be allowed to levy DF under the Airports Authority of India Act, 1994, at Rs 350 per domestic passenger and Rs 1,000 per international passenger.
As it was necessary to complete the first phase of modernising Delhi airport before the 2010 Commonwealth Games, the Ministry, in consultation with the law ministry and the AAI, studied the proposal and decided to allow the imposition of the DF at Rs 200 for domestic and Rs 1,300 for international passengers.
In 2007, DIAL had handled around 24 million passengers, of whom 60 per cent were domestic and the rest international. In the calendar year 2008, the airport is expected to handle about 26 million, despite the slowdown in traffic.
