New Delhi: The
government may have to eat crow on the issue of Airport Development Fee (ADF)
which was to be abolished by next month at Delhi and Mumbai International
Airports. According to sources, instead of abolishing it completely, the civil
aviation ministry may have to agree to lower the fee per person but extend the
period of levy beyond 2014.
On 16 October, the ministry had directed the
Airports Authority of India (AAI) to infuse more equity into Delhi and Mumbai
airports, which operate on a Public Private Partnership model with a consortium
of private developers owning majority equity in the ventures. The government
wants AAI to bring in more equity and also the consortium led by GMR to pitch in
so that the ADF is abolished for Delhi.
But while the AAI has agreed to infuse more
equity, GMR has said it cannot bring in more funds since its lenders are not
advancing more loans.
Left with no choice but to compromise, the
ministry may be unable to abolish ADF all together in Delhi from 1 January, as
promised.
A senior ministry official told Firstpost, ADF
may be reduced if not abolished but no final decision can be taken unless the
Airports Economic Regulatory Authority (AERA) takes a view. “The matter is
before AERA. In case AERA comes out with a fresh consultation paper in the next
few days, it means AERA is willing to reconsider its position. In that case,
ADF may be lowered. But lets wait and see what happens”.
If Delhi gets to continue levying ADF for
longer, even the developers of Mumbai airport would seek this option.
ADF is a method to bridge the gap in any airport
project funding. The expected financing gap for Delhi International Airport
(DIAL) is likely to be Rs 1,500 crore if ADF is abolished from January.
Delhi as well as Mumbai airports (which is also
a PPP model airport with GVK-led consortium the majority partner) were allowed
to collect the levy on an ad-hoc basis for 36 months.
Departing domestic passengers pay Rs 200 and Rs
100 at Delhi and Mumbai airports, while those flying abroad pay Rs 1,300 and Rs
600 respectively as ADF.
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