Hyderabad: The Airports Economic Regulatory Authority has allowed GMR Hyderabad International Airport that manages Rajiv Gandhi International Airport here to gradually increase the user development fee on embarking domestic as well as international passengers from April 1, 2022.
In an order on the tariff revision for the third control period (April 2021 to March 26) based on a proposal by the GHIAL, the AERA has issued orders, which were recently uploaded in its website. As per the orders of the regulator, the airport operator was allowed to increase user development fee from the existing Rs281 to Rs 480 and Rs393 to Rs700 for domestic and international passengers respectively from April 1, 2022. Similarly, the charges will be enhanced up to Rs750 for domestic and Rs1500 for international passengers by December 31, 2025.
However, the charges will be reduced to Rs500 and Rs1,000 for domestic and international passengers for the last three months of the Control period, AERA said in its order. "The Authority has agreed for tariff increases and additional charges in the form of user development fee , but at the same time it believes that the subsequent control period would be better in the context of lesser capital requirements and larger passenger base owing to the recovery in the aviation sector and revival of the economy from the Covid-19 pandemic," AERA said.
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The tariff rates for the subsequent control period are expected to be lower. In view of this, the Authority has reduced the tariff rates in the last quarter of the final year of the Third Control Period, FY 2026, which may also continue till tariff determination for the Fourth Control Period, it further said. The airport sought an increase of user development fee from Rs281 to a whopping Rs608 from October 1, a jump of 116 per cent for departing domestic passengers. Similarly, the airport operator sought a 231 per cent hike on international passengers to Rs1,300 from the current Rs393.
The GHIAL, during the third control period, proposed to gradually increase the UDF up to Rs728 and Rs2,200 by the end of 2025-26 for domestic and international passengers respectively. The Authority decided to not allow the capital expenditure of Rs519 crore towards metro connectivity during the Third Control Period due to lack of more and specific details. The GMR group earlier said it will be investing over Rs 00 crore in a Rs5,000 crore metro rail link project being proposed by the Telangana government for connectivity to the aerodrome from various parts of the city.
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(PTI)
