..:: India Strategic ::. Civil Aviation: No development fees at Delhi and Mumbai airports from 2013

British Prime Minister David Cameron resigns | Theresa May takes over as new UK PM | May becomes second British woman PM after Margaret Thatcher | Cameron announced resignation following Brexit, a referendum for UK's exit from EU June 23 | International Tribunal demolishes China's claims over South China Sea | Permanent Court of Arbitration at The Hague says China has no legal basis to claim regional waters and build islets | The Tribunal also held China guilty of damaging coral reefs and natural environment | China has border maritime problems with all its neighbours | China rejected the decision, saying it is invalid and has no binding force | India, Tanzania agree to deepen overall defence and security partnership, especially in the maritime domain | Both nations agreed to work closely, bilaterally, regionally and globally to combat twin threats of terrorism, climate change | Prime Minister visiting Tanzania in the last leg of his visit to 4 African nations July 7-11 | Boeing, Mahindra Defence open C-17 Training Centre for IAF | Terrorism is the gravest security threat facing the world today, says PM Modi during Mozambique visit | Terrorism impacts India and Mozambique equally | NASA spacecraft Juno reaches Jupiter | Juno crossed violent radiation and flew 130,000 miles/hour | Jupiter is the largest planet in our solar system | Juno should be in Jpiter orbit for 20 months to send data | The $1.1 billion Juno mission took five years to reach Jupiter | LCA 'Tejas' joins Indian Air Force | Tejas is an indigenously-built Light Combat Aircraft | The single-seat, single-engine, multi-role light fighter is designed by ADA and manufactured by HAL | India test-fires new surface-to-air missile from a defence base in Balasore off Odisha coast | The new missile is jointly developed by India and Israel | Abdul Majeed Al Khoori appointed Acting CEO of the Abu Dhabi Airports | Eng. Mohamed Mubarak Al Mazrouei becomes Advisor to the Abu Dhabi Airports Chairman | Defence Minister Manohar Parrikar hands over 'Varunastra' to Indian Navy | Varunastra is an advanced heavyweight anti-submarine torpedo | It is indigenously designed, developed and manufactured by DRDO | India officially joins Missile Technology Control Regime | With this India becomes 35th member of the MTCR | Indian Foreign Secretary S Jaishankar signed the document of accession into MTCR in Seoul June 27 | The document was signed in presence of Ambassadors of France, the Netherlands and Luxembourg - the Chair and two co-chairs of the Regime | India had applied for the membership in 2015 | India finalises deal for 145 BAE Systems M777 artillery guns | This is Indian Army's first artillery deal in 30 years | Britain votes to leave EU, Pound crashes | 52 per cent voted Leave and 48 Remain in historic referendum | British Prime Minister David Cameron announces to resign before October over UK's exit | Leave process will take about two years though | Markets hit worldwide, including in India | China scuttles India's NSG bid | India joins SCO | India, apart from Pakistan, was admitted as full member of SCO during its Ufa Summit in July 2015 | After completing certain procedures, India now technically entered into SCO | India had an observer status for past 10 years prior to entering into six member regional bloc | No consensus on India's membership in NSG | China and five other countries oppose India's entry as New Delhi has not signed NPT | China insists Pakistan must also enter NSG if India's application is accepted | Pakistan is China's only military ally and is also known as a nuclear, missile and terror proliferator (NMTP) | Indian Space Agency ISRO successfully launches 20 satellites in one rocket | This is the biggest launch in ISRO's history | The satellites were launched onboard PSLV C-34 from SDSC (SHAR) Sriharikota | PSLV C-34 was carrying 17 satellites from US, Canada, Germany, Indonesia and 3 from India | Government of India approves 100% FDI in defence and civil aviation sectors | In defence, foreign investment beyond 49% (and up to 100%) permitted through the government approval route | This is in cases of access to modern technology in the country | For aviation, the government allowed 100% FDI in India-based airlines | The decision on FDI reforms taken at a high-level meeting chaired by Prime Minister Modi | India confident of getting into NSG, says External Affairs Minister Sushma Swaraj | India is working with China to win support | India will not oppose any country's membership proposal, EAM told a news conference |

Home

Editorial

No development fees at Delhi and Mumbai airports from 2013

Published: October 2012

New Delhi. The government has announced it will scrap charging airport development fees (ADF) meant to cover the funding gap for the development of Mumbai and New Delhi airport from Jan 1, 2013.

Currently, the ADF charges are Rs.200 per domestic passenger and Rs.1,300 per international passenger at Delhi airport, and Rs.100 per domestic passenger and Rs.600 per international passenger at Mumbai airport.

These charges are part of an agreement signed between the two private players, who manage the New Delhi and Mumbai airports, and the government for the modernisation of the aeronautical infrastructure at the two cities.

The IGI airport operator, Delhi International Airport Limited, had submitted the total cost of modernising the IGI airport at Rs.12,857 crore against the original cost of Rs.8,957 crore it gave to the civil aviation ministry in 2009.

On April 24, the Airport Economic Regulatory Authority (AERA) allowed an escalation of 345 percent in aeronautical charges which allows the operator to collect Rs.200 from departing domestic and Rs.1,300 from departing international passengers. The charges became applicable in May.

According to the Civil Aviation Ministry, the proposal will be carried out by infusion of fresh funds from the Airports Authority of India (AAI) which is a part owner of the Delhi and Mumbai airport.

"Civil Aviation Minister Ajit Singh has directed AAI to infuse more equity in Mumbai and Delhi airports and accordingly submit its proposals to AERA," the ministry said in a statement Oct 16.

However, the proposal comes with a rider that the ADF will stand abolished only if funding gaps are met with equity infusion and raising of loans by the airport operators.

If ADF is abolished from Jan 1, 2013, the finance gap of Rs.4,200 crore is expected in case of Mumbai and Rs.1,175 crore in case of Delhi airport.

AAI has been directed to infuse additional equity of Rs.288 crore in case of Mumbai airport against its 26 percent share in equity of MIAL.

"Similarly in case of Delhi to fill the balance in financing gap, AAI will contribute equity share of Rs.102 crore," the statement added.

The balance in financing gap of the project will have be met by the airport operator through infusion of their share of equity.

Earlier, the ministry had directed AAI not to levy ADF at the Chennai and Kolkata airports. AAI had submitted proposals to AERA for levying ADF of Rs.300 per embarking domestic passenger and Rs.1,000 per embarking international passenger at Chennai and Kolkata airports.

The modernization and expansion of Kolkata and Chennai airports is currently underway, on expenditure budgets of Rs.2,325 crore and Rs.2,015 crore respectively.

(IANS)