As a respite for air travelers from Mumbai and New Delhi, the Civil Aviation Minister Ajit Singh has directed Mumbai International Airport (MIAL) and Delhi International Airport (DIAL) to abolish airport development fee (ADF) at the two airports from January 1, 2013 and urged the state-run Airports Authority of India (AAI) to infuse more equity in both the joint ventures to fill the financing gap.
At present, Delhi Airport charges ADF of Rs 200 per domestic and Rs 1,300 per international passenger, while Rs 100 and Rs 600 respectively at Mumbai. The directive came after the Aviation Ministry directed AAI not to levy ADF at Chennai and Kolkata Airports, which are being modernized now. While ADF is charged to meet cash flow requirements before completion of an airport upgrade project, UDF is been charged for using the completed facility.
After taking off the ADF, the financing gap for MIAL would be about Rs 4,200 crore, while DIAL will impact by about Rs 1,175 crore. However, the ministry had directed AAI to plug-in additional equity of approximately Rs 288 crore in MIAL and Rs 102 crore in DIAL, against its 26% in the equity of both the joint ventures.
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