New Delhi, Mumbai airport to drop airport development fees from 2013

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Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL) will not charge airport development fees (ADF) starting 1 January 2013.

The civil aviation minister has directed Airports Authority of India (AAI) to inject more equity in MIAL and DIAL, with the objective of abolishing the fee at these airports. AAI is to submit its proposals to the Airports Economic Regulatory Authority (AERA).

As of now, domestic passengers at Delhi pay an ADF of Rs200 ($3.79), while international passengers pay Rs1,300. The ADF at Mumbai is Rs100 and Rs600 for domestic and international passengers respectively.

DIAL, led by GMR Infrastructure, and MIAL, led by GVK Power and Infrastructure, may need to raise an additional Rs11.8 billion and Rs42 billion respectively, if the ADF is abolished starting 1 January 2013.

AERA, which is in the process of determining the ADF and also the aeronautical tariff for MIAL, has asked the AAI to what extent should it inject additional equity into the airports.

The civil aviation minister has requested for AAI to inject additional equity of about Rs2.88 billion into MIAL and Rs1.02 billion into DIAL, against its 26% share in both joint ventures. The airport operators would also need to inject equity that is proportionate to their stakes in the airports.