DIAL seeks 1-yr extension to collect airport fee

Passengers flying out of New Delhi’s Indira Gandhi International airport (IGI) may continue to pay more, as Delhi International Airport Ltd (DIAL) has applied for an extension of airport development fee (ADF) by 12 months. DIAL operates IGI.

“DIAL has applied for an increase in the ADF collection term by one year to bridge its deficits,” said a ministry official, who did not want to be identified.

The extension will help DIAL to generate over Rs 2,500 crore from ADF. In March 2009, it was allowed to collect an estimated Rs 1,827 crore for 36 months.

DIAL had invested Rs 11,700 crore in the first phase to build IGI. It was an escalation by Rs 2,725 crore from the earlier estimate of Rs 8,975 crore.

Each domestic passenger flying out of IGI is charged Rs 200 and international passengers, Rs 1,300. The Delhi airport caters to over 70,000 passengers every day.

The Airport Economic Regulatory Authority (AERA), which has been entitled to decide on all the airports with capacity of above 1.5 million a year, will decide on DIAL’s proposal.

When contacted, a top AERA official said: “We are auditing the cost estimate submitted by the airport consortium and any decision to be taken will be after the audit report is out.”

DIAL is a joint venture company led by the Bangalore-headquartered GMR Group, state-owned Airports Authority of India, Fraport and Malaysian Airport Holdings.

ADF is charged to bridge the gap between projected and actual construction cost of the airport.