While fixing the DF at Rs 100 for domestic passengers and Rs 600 for international passengers, the regulator invited suggestions from stakeholders.
Airports Economic Regulatory Authority (AERA) has initiated the process for fixing Development Fee (DF) to be collected from passengers embarking from Chhatrapati Shivaji International Airport, Mumbai.
The airport is being managed by Mumbai International Airport Limited (MIAL) -a GVK Group company.
While fixing the DF at Rs 100 for domestic passengers and Rs 600 for international passengers, the regulator invited suggestions from stakeholders.
The central government had, on February 2009, allowed GVK to collect Rs 100 and Rs 600 for domestic and international passengers.
However, the Supreme Court on April 26 last year held that no DF could be levied or collected from the embarking passengers at major airports unless an Authority determines the rate of such DF.
The MIAL requested AERA to fix the DF saying any delay would jeopardise project completion due to shortage of funds.
The MIAL informed that when Ministry of Civil Aviation had approved DF, the project cost was Rs. 9802 crores and the same was examined by Independent Engineer 'Engineers India Limited'.
Subsequently because of reasons beyond control of MIAL, project cost is revised to Rs 10,453 crore and the same was put at Rs 12,380 crore due to factors such as relocation of Chhatrapati Shivaji Maharaj statue, pre-operative expenses, escalations, contingency and change in scope and variation in estimates, MIAL said.
"....the collection of DF has been suddenly discontinued at CSIA, resulting in severe fund crunch to meet the cost of ongoing project. It is essential that DF amount is determined expeditiously so that collection of DF may be permitted in order to facilitate timely implementation of the project. We request AERA to expedite the process of determination of DF amount at CSIA," MIAL requested the regulator in a letter in June last year.
The AERA in its consultation paper said MIAL may be permitted to levy and collect DF at the airport from March 2012 for period of 24 months to bridge presently estimated funding gap of Rs 906 crore.
The regulator sought evidence-based feedback, comments and suggestions from stakeholders on the proposal before January 27.
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