The Airports Economic Regulatory Authority has allowed Mumbai Interna-tional Airport Ltd (MIAL) to charge development fee. However, concern on the project cost escalation of Rs 2,500 crore has led to anxiety among its lenders.
From May 1, domestic and international passengers flying out of Mumbai would have to pay Rs 100 and Rs 600 as development fee, respectively. MIAL was barred from collecting the fee after a Supreme Court order. Following this, MIAL filed an application before the authority to allow it to collect the fee. The authority issued the order on Wednesday.
MIAL would be able to raise about Rs 876 crore from the development fee over two years.
MIAL was allowed to collect development fee by the civil aviation ministry in 2009 to bridge the gap in funding the airport project. While the cost of the airport project, including the construction of a new integrated terminal and airside works, was initially pegged at Rs 9,802 crore, the project cost rose to Rs 10,453 crore. The estimate was further revised to Rs 12,380 crore.