Aviation Min scraps levy at Mumbai, Delhi airports

Written By Unknown on Selasa, 16 Oktober 2012 | 21.03

Moneycontrol Bureau

Air travel will get cheaper from Delhi and Mumbai airports as the civil aviation ministry has scrapped the levy of airport development fees (ADF) on passengers at the at these airports. ADF is levied for 'funding or financing the costs of upgradation, expansion or development of the airport at which the fee is collected."

The ministry has directed the Airports Authority of India to arrange alternate sources of funding to bridge the funding gap. The Delhi and Mumbai airports are run by private-led consortia. Currently, Rs. 200 per domestic passenger and Rs 1300 per international passenger are being charged as ADF at Delhi Airport and Rs. 100 per domestic passenger and Rs. 600 per international passenger. The expected financing gap in case of Mumbai International Airport Ltd. (MIAL) will be approximately Rs. 4200 crore while in case of Delhi International Airport Ltd. (DIAL), it will be approximately Rs. 1175 crore if the ADF is abolished with effect from 1st January 2013.



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