Amendment to Airports Authority of India (Major Airports) Development Fees Rules, 2011
What is Development Fee (DF) and why Development Fee is charged by Airport Operators? Development Fee is a levy made under section 22A of the AAI Act, 1994, inter-alia, for funding or financing the cost of upgradation, modernization or development of the airport . The levy is in the nature of a "pre-funding" charge and is consistent with ICAO policies. What is User Development Fee and why User Development Fee is charged? What are the charges/fees levied to passengers by private airports / JVS for development / upgradation of airports? Greenfield airports like Hyderabad and Bangalore are levying User Development Fee (UDF) from embarking passengers to fund viability gap of these airports . DIAL and MIAL have also been authorised by the Government to levy UDF from embarking passengers at Delhi and Mumbai airports to fund modernization of Delhi and Mumbai airports. Read the above carefully – Though the common point in the above 2 questions is “Funding modernization of the airpor