DGCA issues notification on UDF at Hyderabad Airport

The Director General of Civil Aviation (DGCA) has restored User Development Fee (UDF) at the GMR group managed Rajiv Gandhi International Airport here following a high court order.
Airports regulator Airports Economic Regulatory Authority (AERA ) had scrapped the UDF that was being collected at the airport from April 1, 2014.
The GMR Group had challenged the order in the Hyderabad High Court. The company had requested the court to set aside the AERA's order and received a favourable order recently.
"In pursuance to the order of the Hon'ble High Court at Hyderabad..., regarding the collection of tariff/ airport charges at Rajiv Gandhi International Airport Hyderabad. Accordingly UDF will be levied at RGIA, Shamshabad @Rs 430 per embarking domestic passenger (exclusive of service tax) and @ Rs 1,700 per embarking international passenger (exclusive of service tax) with effect from 3, November. All other tariff/charges prevailing prior to AERA dated 24-02-2014 shall remain unchanged," the DGCA notification issued yesterday said.

UDF is a charge levied by airport operator on passengers to recoup the investment made on the development of the airport.
Based on AERA's ad-hoc UDF order in October 2010, GHIAL was earlier charging Rs 430 and Rs 1,700 per departing domestic and international passenger, respectively, from 1 November 2011 till 31 March 2014.
GMR Hyderabad International Airport is a joint venture company promoted by the GMR Group (63 percent) in partnership with the Centre (13 percent), Andhra Pradesh government (13 per cent) and Malaysia Airports Holdings Bhd (11 per cent).