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AERA rejects GMR proposal for UDF on arrival at Hyd Airport

Last Updated: Sunday, June 2, 2013 - 16:37

Hyderabad: The Airports Economic Regulatory Authority has turned down the Rajiv Gandhi International Airport operator GMR's proposal of levying User Development Fee (UDF) on arriving passengers here.

Airports regulator AERE rejected the move by GMR Hyderabad International Airport (GHIAL), a subsidiary of GMR Group, saying that it is against the concession agreement the airport operator had with the government.

"The authority has noted in para 23.92...That GHIAL's proposal of levying UDF on both departing and arriving passengers is at variance with the provisions of the Concession Agreement. The authority therefore has proposed to determine UDF only from the departing passengers as is indicated in the Concession Agreement," AERA said in its observation.

GMR recently approached the Airports Economic Regulatory Authority (AERA) for tariff revision.

GMR is charging Rs 430 and Rs 1,700 per embarking domestic and international passenger, respectively.

The AERA allowed them purely on an ad-hoc basis, with effect from November 1, 2010, for a period of five years.

According the consultation paper issued by AERA, GMR said UDF is proposed to be levied on both arriving and departing passengers (except on transfer/transit pax and infants) to ease burden on outgoing passengers.

In respect of UDF for domestic passengers, it proposed two bands- metro cities and non-metro cities. Delhi, Mumbai, Chennai, Kolkata and Bengaluru are covered under metro cities while all others are classified as non-metro cities.

In case of international UDF, GMR has proposed two categories - SAARC and non-SAARC countries. SAARC member countries are Sri Lanka, Afghanistan, Bangladesh, Pakistan, Nepal, Bhutan and Maldives.


First Published: Sunday, June 2, 2013 - 16:37
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