 "Mumbai Metro")
Flyers from Mumbai will have to shell out extra with the Airport Economic Regulatory Authority (AERA) approving an additional development fee to fund the construction of two metro rail stations near the Mumbai airport.
AERA has allowed Mumbai International Airport Limited (MIAL) to charge Rs 20 and Rs 120 from each departing domestic and international passenger, respectively. The additional charge will be clubbed with the existing development fee of Rs 100 (domestic) and Rs 600 (international) and will be collected from April 1 till March-end 2021. Thus, the new levy will be Rs 120 and Rs 720 (exclusive of tax) on each passenger.
MIAL expects to collect Rs 518 crore by way of additional fees to fund the construction of two stations, which will be part of the 33-km Colaba-Seepz Metro line being developed by Mumbai Metro Rail Corporation (MMRC).
In its submission to AERA, MIAL had proposed collection of Rs 50 and Rs 100 as a levy to fund the construction of the metro stations. The airport operator said it was already highly leveraged and there was no scope for raising further debt to fund the contribution of Rs 518 crore towards the cost of the Metro rail project.
At present, passengers at Mumbai are levied two kinds of fees - airport development fee to fund capital expenditure and user development fee to bridge the gap between operating expenses and the airport’s revenue. Currently, the Mumbai airport levies Rs 274 and Rs 548 (exclusive of service tax) as UDF for domestic and international passengers, respectively.
MMRC has proposed three underground stations in Mumbai airport area including Domestic Terminus (T1), International Terminus (T2) and Sahar Road. MMRC had signed an agreement with MIAL last September, under which it agreed to fund the construction cost of the Metro rail stations to the tune of Rs 777 crore subject to AERA’s approval. It was after following the due process that AERA, in consultation with the stakeholders, approved the proposal to fund two metro rail stations, one at T1 and the other at T2. While commuters will bear the development fee, MIAL will finance the construction of the Sahar Road station from non-passenger revenue.
“It is a very positive step by AERA. MMRC has secured financial commitment under the stakeholders funding. It will give boost to the project,” said Ashwini Bhide, managing director, MMRC.
