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Govt rejects DIAL’s proposal to levy Airport Dev Fee for air train corridor

5 Jan 2024

Delhi International Airport Limited (DIAL) planned to levy an Airport Development Fee (ADF) to fund its latest ₹3,500 crore air train corridor project connecting all three airport terminals.

The Ministry of Civil Aviation rejected GMR Group-operated DIAL’s plans to charge an Airport Development Fee (ADF) to fund its latest project of an Air Train Corridor connecting all three terminals. The ministry directed the organisation to levy a User Development Fee (UDF) instead once the train is operational. DIAL is now looking to raise funds via debt or equity.

Passengers currently rely on cabs and buses to travel between terminals, and this project will reduce travel time. ADF pre-funds airport infrastructure projects and allows operators to charge passengers for infrastructure upgrades. A UDF is levied after project completion if the airport fails to generate adequate returns.

The earlier proposal included four stops at T1, T3, cargo terminal, and Aerocity, which may increase to six to attract more paying customers. Airports Authority of India supported levying UDF, which guarantees 46% of revenue to be shared with the airport operator.

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