State-run body Airports Authority of India has been directed by the Civil Aviation Ministry not to impose Airport Development Fee (ADF) on passengers travelling out of the modernised Kolkata and Chennai airports.
The direction of Civil Aviation Minister Ajit Singh came amid the process of fixing tariffs initiated by the Airports Economic Regulatory Authority (AERA).
The AERA will now determine only User Development Fee (UDF) and other tariffs like landing and parking charges and "no ADF will be charged from the passengers flying from Kolkata and Chennai airports even after the modernisation of the airport is completed," an official spokesperson said.
"Accordingly, the AAI has now submitted proposals to AERA without incorporating ADF," the spokesperson said. The public sector airports body had submitted proposals to AERA earlier for levy of development fee of Rs 300 per embarking on domestic passenger and Rs 1,000 per on international passenger at Chennai and Kolkata airports.
While ADF is levied to meet cash flow requirements before completion of an airport upgrade project, UDF is charged for using the completed facility. ADF is levied at private-led Delhi and Mumbai airports among others.
Currently, Rs 200 per domestic and Rs 1,300 per international passenger is being charged at Delhi airport as ADF and Rs 100 and Rs 600 being charged at Mumbai airport.
The modernisation and expansion of Kolkata and Chennai airports, being undertaken by AAI, costs Rs 2,325 crore and Rs 2,015 crore respectively.
The proposals were returned to AAI by AERA with the direction to undertake the user consultations and make fresh proposals indicating agreements and views of the users.
The Minister then directed AAI not to send any fresh proposals to AERA for levying ADF on passengers traveling from both these airports.