IGI airport fee cut won’t hit total collection: GMR
2 Jan 2013 4:50 AM IST
Effective from Tuesday, the development fee levied on domestic as well as international passengers at the Indira Gandhi International Airport (IGIA) would be half of what is being charged now.
The Airports Economic Regulatory Authority in an order has reduced the development fee rates at IGI to Rs100 per embarking domestic passenger and Rs 600 per embarking international passenger from 1 January 2013 and said this would continue till April 2016.
Until now, the GMR-led consortium has been levying a development fee of Rs.200 per embarking domestic passenger and Rs.1,300 per embarking international passenger at IGIA.
'Considering the lower rate of development fee, the period of levy has been extended by approximately two years to ensure the amount of development fee collected on an NPV (net present value) basis remains unchanged,' GMR said in a statement Monday.
The levy will be periodically reviewed by the Airports Economic Regulatory Authority considering the changes in interest rate, traffic and other things.
The company targets a collection of Rs.1,413 crore as airport development fee till 2016. 'As the lower rate of development fee is coupled with the extension of time period, it does not impact the total amount of development fee collected. Hence there will be no impact on the means of finance, for the completed modernisation and expansion project of Delhi Airport,' it said.
The Airports Economic Regulatory Authority in an order has reduced the development fee rates at IGI to Rs100 per embarking domestic passenger and Rs 600 per embarking international passenger from 1 January 2013 and said this would continue till April 2016.
Until now, the GMR-led consortium has been levying a development fee of Rs.200 per embarking domestic passenger and Rs.1,300 per embarking international passenger at IGIA.
'Considering the lower rate of development fee, the period of levy has been extended by approximately two years to ensure the amount of development fee collected on an NPV (net present value) basis remains unchanged,' GMR said in a statement Monday.
The levy will be periodically reviewed by the Airports Economic Regulatory Authority considering the changes in interest rate, traffic and other things.
The company targets a collection of Rs.1,413 crore as airport development fee till 2016. 'As the lower rate of development fee is coupled with the extension of time period, it does not impact the total amount of development fee collected. Hence there will be no impact on the means of finance, for the completed modernisation and expansion project of Delhi Airport,' it said.
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