Press Information Bureau
Government of India
Ministry of Civil Aviation
09-March-2011 18:12 IST
Proposal to AERA to Review ‘Development Fee’ at Delhi and Mumbai Airports
User Development Fee (UDF) is collected from embarking domestic and international passengers at Bengaluru International Airport, Devanahalli @ Rs.260/- per departing domestic passenger and @ Rs. 1070/- per international passenger and at Rajiv Gandhi International Airport, Shamshabad, Hyderabad @ Rs.430/- per departing domestic passenger and Rs.1700/- per departing international passenger (exclusive of service tax if any).

Development Fee (DF) @ Rs. 200/- per departing domestic passenger and @ Rs 1300/- per departing international passenger at IGI airport, Delhi and @ Rs. 100/- per departing domestic passenger and @ Rs. 600/- per departing international passenger, inclusive of all applicable taxes at CSI airport, Mumbai is being collected.

UDF is a revenue enhancing measure to ensure economic viability of airport operations and in case of major airports is approved by Airports Economic Regulatory Authority (AERA) so as to ensure that the airport operator gets a fair return on the Regulatory Asset Base. However, DF is a pre-funding mechanism for the project and is approved by AERA in case of major airports in case of their inability to finance the project through other options.

The UDF and the DF in respect of the airports is levied on a case to case basis.

There is no proposal for increase in UDF at Bangalore and Hyderabad Airport. However, the proposal for review of DF at IGI Airport, New Delhi and CSIA Airport Mumbai has recently been received by AERA.

The above information was given by the Minister for Civil Aviation Shri Vayalar Ravi in reply to a question in the Lok Sabha today.