New Delhi, 31st December, 2012:
Based on the approvals from Ministry of Civil Aviation (MoCA)/Airports Economic Regulatory Authority (AERA) and also as ratified by the Supreme Court, Development Fee (DF) is being levied at Indira Gandhi International Airport, New Delhi at Rs 200/- per embarking domestic passenger and Rs.1300/- per embarking international passenger.
Pursuant to the Press note dated 16th October, 2012 from Ministry of Civil Aviation (MoCA), AERA reviewed its existing DF Order at IGI Airport. Post a thorough consultation process, AERA has issued an order dated 28th December 2012, to reduce the Development fee rates at IGI Airport to Rs. 100/- per embarking domestic passenger and Rs.600/- per embarking international passenger w.e.f. 1st January, 2013 and to continue till tentatively determined as April 2016.
Considering the lower rate of Development fee, the period of levy has been extended by approx. two years to ensure the amount of development fee collected on an NPV basis remains unchanged. The levy will be periodically reviewed by AERA considering the changes in interest rate, traffic, etc.
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 modernization and expansion project of Delhi Airport.
We welcome this AERA order and trust that the lowering of Development fee will enable Airlines to reduce the overall travel cost of passengers, thus giving a boost to the Indian Aviation sector.
Delhi International Airport (P) Ltd (DIAL) is a joint venture company; comprising the GMR Group, Airports Authority of India, Fraport and Malaysia Airports Holdings Berhad. The project being developed by DIAL under Public Private Partnership has been given the mandate to finance, design, build, operate and maintain the Delhi Airport for 30 years with an option to extend it by another 30 years
About GMR Infrastructure Limited:
The Company is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets. The Company has 16 power generation assets of which 6 are operational and 10 are under various stages of implementation and 10 Road assets, of which 8 are operational and 2 are under construction. In the Airports sector, it has developed and commissioned the Greenfield International Airport at Hyderabad. The Company, besides operating the existing Delhi International Airport, has also built a brand new integrated terminal T3 which was commissioned in time for the Commonwealth Games in October 2010. It has upgraded and is operating the Istanbul Sabiha Gökçen International Airport. GMR Group is also committed to social development initiatives and executes these through its Corporate Social Responsibility arm, the GMR Varalakshmi Foundation which is present in 22 locations.
For further information about GMR Group, visit www.gmrgroup.in
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