Mumbai Airport to levy development fees on flyers till June end

Passengers flying out of Mumbai Airport will continue paying the development fees (DF) till June 30, 2022. The Airports Economic Regulatory Authority (AERA) has extended the levy of INR 120 and INR 720 per departing domestic and international passenger, respectively, from March 31, 2022, to June end as an interim measure.

The regulator has also directed the Airports Authority of India (AAI) to “examine all issues being raised by Mumbai International Airport Ltd (MIAL)” on this subject by May 15.

AERA had in December 2012 sanctioned charging a DF of INR 100 and INR 600 per departing domestic and international passenger, respectively, till April 30, 2021, to finance a deficit of INR 3,845 crore in Chhatrapati Shivaji Maharaj International Airport (CSMIA) capacity enhancement project.

Mumbai Airport to levy development fees on flyers till June end

Subsequently, in January 2016, it allowed a levy of INR 20 and INR 120 per departing domestic and international passenger, respectively, till March 31, 2021, to finance metro works at the airport worth INR 518 crore.

These two levies were merged to become INR 120 and INR 720 per departing domestic and international passenger. When Covid hit airport footfalls severely and collection suffered badly, AERA had on MIAL’s request extended these two levies till March 31, 2022.

AAI had this March told AERA that “DF to be billed as on September 30, 2021, is INR 401.9 crore. However, as per MIAL, DF billable (on that date) is INR 1459 crore. Further (AAI informed) MDF (metro DF) to be billed by MIAL as of September 30, 2021, is INR 89.6 crore.

“A further request was received from MIAL for extension of the period of levy… due to shortfall in the collection… beyond March 31, 2022, on an interim basis. A letter was sent to AAI on January 25, 2022, for (its) comments regarding year-wise DF collected from passengers, amount disbursed to MIAL, interest payment, details of utilisation…

MIAL had claimed outstanding MDF as of September 30, 2021, as INR 106.8 crore. In addition, AAI has pointed out certain issues of importance in the DF and MDF audit reports and MIAL’s claim, which needs to be sorted out.”

AERA order dated March 28, 2022

“In view of paucity of time for resolving the issues and reconciliation of figures,” the order says “there is a necessity to extend the levy of DF beyond March 2022, to recover the sanctioned DF amount.

Accordingly, it is decided to extend the levy of DF up to June 30, 2022. In the meantime, the position will be examined and further action/Order will be issued based on such examination.”

AERA has directed AAI to examine all issues raised by MIAL by May 15 and also asked the airport operator to “provide all required documents to AAI in this regard.”

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