No ADF at Delhi, Mumbai from Jan 1

FP

The civil aviation ministry on Tuesday asked operators of the Delhi and Mumbai airports to stop levying Airport Development Fee (ADF) from next year, and directed Airports Authority of India (AAI) to infuse more equity into the joint venture firms.

Civil Aviation Minister Ajit Singh directed Delhi International Airport Ltd (DIAL) and Mumbai International Airport Ltd (MIAL) to submit proposals to the Airports Economic Regulatory Authority (AERA) on stopping ADF from January 1, 2013.

ADF — a form of viability gap funding to bridge the difference in the actual and estimated cost of construction for the private sector airport developers — is currently charged at the rate of Rs 200 per domestic passenger and Rs 1,300 per international passenger at Delhi airport, and Rs 100 and Rs 600 respectively at Mumbai.

DIAL said it would "analyse its financial structure... and increased impact on the aeronautical tariffs and respond appropriately to AERA".

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