Equity crunch: Govt, not to abolish can lower airport fees

Delhi airport. Reuters

But while the AAI has agreed with the infusion of more equity, GMR has said that it cannot bring in more resources, because his lenders not promote more loans.

Left with no other choice but to compromise, to abolish the Ministry may not ADF all together in Delhi from 1 January, as promised.

A senior Ministry official told Firstpost, ADF may be reduced or even abolished but no final decision can be taken, unless the airports economic regulatory authority (AERA) takes a position. "the case before us AERA. In the case with a fresh consultation document AERA in the coming days, means that AERA is prepared to reconsider its position. In that case, the ADF can be reduced. But lets wait and see what happens ".

If Delhi gets to continue lifting ADF for more, would even the developers of Mumbai Airport try this option.

ADF is a method to bridge the gap in each airport project financing. The expected financing deficit for Delhi International Airport (DIAL) is probably Rs 1500 crore if ADF is repealed with effect from January.

Delhi and Mumbai airports (which is also a PPP-model airport with the majority partner GVK-led consortium) were allowed to collect the levy on an ad hoc basis for 36 months.

Departing domestic passengers pay Rs 200 and Rs 100 at airports, Delhi and Mumbai, while flying abroad Rs 1,300 and Rs 600 pay respectively as ADF.

. pagination_article

View the Original article