The Airports Economic Regulatory Authority (AERA) may allow Delhi International
Airport Ltd (DIAL) that operates IGI Airport at the national capital to extend the period of collecting
airport development fee (ADF) from 36 months to 51 months.
DIAL, which started charging ADF since March 2009 for funding the gap owing to cost overruns - from Rs 5,900 crore to Rs 12,700 crore in its Delhi airport modernisation project - could be extended from March 2012 to June 2013, once approved by AERA. The government had earlier mandated DIAL to charge ADF for 30 months - ending March 2012 - through which it could collect Rs 1,825 crore each to bridge the gap in capital due to fall in passenger numbers and poor response to their real estate projects at that time due to the economic slowdown.
However, DIAL had approached the government for an additional Rs 3,500 crore as ADF. The technical and financial audit conducted by consulting firm KPMG and Engineers India Ltd (EIL) on modernisation of airports has also favoured extension of the ADF. Civil aviation ministry sources said there is also a move within the concerned departments to allow the Mumbai airport developer Mumbai International Airport Ltd (MIAL) to allow it to legally charge ADF from passengers.
Last week, the apex court struck down the very concept of ADF saying it was invalid unless approved by AERA as in case of MIAL while it had allowed DIAL to continue charging ADF. Since 2009, MIAL has collected Rs 600 crore as ADF whereas DIAL has collected about Rs 1,250 crore.
MIAL is learnt to be in trouble as it has to pay back Rs 600 crore, which it collected since April, 2009. It has approached the civil aviation ministry as well as the AERA in this regard. Sources said MIAL has been assured an early resolution of the issue.
MIAL had earlier sought a hefty increase in the ADF amount. However, there is a thinking among some bureaucrats in the aviation industry that ADF should be withdrawn immediately as the aviation industry in India as well as globally has been witnessing robust growth for over a year.
"These airport developers were allowed to charge ADF as the aviation industry globally was facing economic downturn globally.
That was one reason that the government allowed these developers to charge the ADF. But now when the industry is flourishing there is no point they should be allowed to charge ADF anymore. Extending it further is not correct and will mean cheating fliers," said an official.
While the ADF is levied to part-fund an upcoming project unlike the user development fee (UDF)- being levied at new airports at Bangalore and Hyderabad- which is charged by a new airport operator.
Courtesy: Mail Today 
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