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 airports”, the additional point to be noted in the UDF’s case is to fund the “Viability Gap Funding” – What is this Viability Gap Funding – It’s the grant provided by the Government to the projects undertaken thro’ PPP with a view to make them commercially viable. Now the important point is that the private partners are charging the users to make this project commercially viable.
Question 1 – Can this not be executed by the Government themselves when they are making provision to get the money from the public / users ? Why the government has to make the private parties earn more from the public instead of government executing ?
This seems like High Profile begging. At least, in roads the public have the freedom to donate to the beggars or not. But here, there is no option and people are trapped.
Question 2 – On seeing the amount that has been collected so far in these airports as UDF (According to rough estimates, GMR-led DIAL has collected about Rs. 1,200 crore till 2010 through the ADF and the GVK-led MIAL collected Rs. 1,300 crore. The ADF was being charged from air passengers at Delhi from March 2009 and at Mumbai from April 2009 – Source http://www.ndtv.com/article/india/no-airport-development-fee-for-mumbai-supreme-court-101541&cp ), can this not be properly planned and executed by the Government so that the amount can be utilised in funding some good programmes for the country (not for funding the politician’s pockets)
Well, why am I raising these things at this point of time ….
A statutory motion is being moved by the Government to amend the Airports Authority of India (Major Airports) Development Fees Rules, 2011, which allows levy of airport development fee (ADF). - http://indiatoday.intoday.in/story/airport-fee-ball-sent-back-to-centre-court-hamid-ansari/1/166178.html
Without having discussion in the parliament, the government is trying to pass the bill – which is going to benefit only the private airport operators …
Another autocratic move .... (!!!!)
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 airports”, the additional point to be noted in the UDF’s case is to fund the “Viability Gap Funding” – What is this Viability Gap Funding – It’s the grant provided by the Government to the projects undertaken thro’ PPP with a view to make them commercially viable. Now the important point is that the private partners are charging the users to make this project commercially viable.
Question 1 – Can this not be executed by the Government themselves when they are making provision to get the money from the public / users ? Why the government has to make the private parties earn more from the public instead of government executing ?
This seems like High Profile begging. At least, in roads the public have the freedom to donate to the beggars or not. But here, there is no option and people are trapped.
Question 2 – On seeing the amount that has been collected so far in these airports as UDF (According to rough estimates, GMR-led DIAL has collected about Rs. 1,200 crore till 2010 through the ADF and the GVK-led MIAL collected Rs. 1,300 crore. The ADF was being charged from air passengers at Delhi from March 2009 and at Mumbai from April 2009 – Source http://www.ndtv.com/article/india/no-airport-development-fee-for-mumbai-supreme-court-101541&cp ), can this not be properly planned and executed by the Government so that the amount can be utilised in funding some good programmes for the country (not for funding the politician’s pockets)
Well, why am I raising these things at this point of time ….
A statutory motion is being moved by the Government to amend the Airports Authority of India (Major Airports) Development Fees Rules, 2011, which allows levy of airport development fee (ADF). - http://indiatoday.intoday.in/story/airport-fee-ball-sent-back-to-centre-court-hamid-ansari/1/166178.html
Without having discussion in the parliament, the government is trying to pass the bill – which is going to benefit only the private airport operators …
Another autocratic move .... (!!!!)
Comments
Post a Comment