Delhi International Airport Ltd may get Rs 995 crore from passenger levies

23rd April 2011

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Airports regulator, Airports Economic Regulatory Authority (AERA), has proposed that the operator of the New Delhi airport be allowed to raise an additional Rs 994.5 crore through passenger levies to partially fund the modernization of Indira Gandhi International Airport (IGIA), as per a Mint report. The GMR Infrastructure Ltd controlled Delhi International Airport Private Ltd (DIAL) that runs IGIA has been modernised at a cost of Rs 12,700 crore. DIAL expects the additional passenger levy will help it recoup costs.  

Passengers are already being charged to help the developer recover Rs 1,827 crore of the Rs 12,700 crore project cost, which was not capped at the time of privatisation by the government. Passengers pay Rs 200 for taking domestic flights out of IGIA and Rs 1,300 for flying abroad until March 1, 2012, as an airport development fee. DIAL had sought an extension of the tenure for charging the fee after submitting the final cost last year so it could raise Rs 1,793 crore over and above the Rs 1,827 crore as cleared by the civil aviation ministry. 

The AERA said in its website that it decided to assent to the DIAL demand after auditing the project cost. There is little it can do to control cost escalations, AERA said. 

“It is also noted that the project has already been implemented. Therefore, any corrections or remedial measures do not appear to be feasible at this completed stage of the project,” AERA added. “Further, the auditors have also expressed their inability to assess the monetary impact of the issues raised by them. In the circumstances, the authority feels that in consonance with the mandate, it should proceed with the finalization of financing gap and DF (development fee) matter.”