+
Govt rejects Delhi Airport's request for development fee
AVIATION & AIRPORTS

Govt rejects Delhi Airport's request for development fee

The government has refused to grant permission to Delhi airport for imposing an airport development fee (ADF) to fund a Rs 35 billion elevated air train corridor connecting its three terminals. Instead, the Ministry of Civil Aviation has instructed the GMR Group-operated Delhi International Airport Ltd (DIAL) to explore alternative funding methods and later impose a user development fee (UDF) once the train becomes operational.

DIAL is currently seeking external funding, either through debt or equity, according to a senior executive of the private airport. The air train project aims to link the three airport terminals, reducing transfer times for passengers who currently rely on buses and taxis. This initiative is crucial for the government's aspiration to position Delhi as a hub comparable to airports in Dubai and Singapore.

The Airports Authority of India (AAI) opposed the ADF, citing it as a capital receipt, and discussions with DIAL and AAI have not been commented on. In contrast, the UDF will be part of the total revenue, with 46% shared with the AAI under the privatisation agreement of 2006. The decision not to allow the ADF levy was influenced by past criticism from the Supreme Court and the Comptroller and Auditor General (CAG). The government officials emphasised caution, citing previous controversies over ADF for runway and terminal construction.

DIAL will now explore other funding options, and one possibility is to increase the number of stops from four to six to boost paying passenger numbers. The air train will remain free for transit passengers. The original plan was for four stops at T3, cargo terminal, Aerocity, and T1, with a transit time of 8-10 minutes. However, the project may be adjusted to include two more stops at Aerocity for increased revenue.

The government has refused to grant permission to Delhi airport for imposing an airport development fee (ADF) to fund a Rs 35 billion elevated air train corridor connecting its three terminals. Instead, the Ministry of Civil Aviation has instructed the GMR Group-operated Delhi International Airport Ltd (DIAL) to explore alternative funding methods and later impose a user development fee (UDF) once the train becomes operational. DIAL is currently seeking external funding, either through debt or equity, according to a senior executive of the private airport. The air train project aims to link the three airport terminals, reducing transfer times for passengers who currently rely on buses and taxis. This initiative is crucial for the government's aspiration to position Delhi as a hub comparable to airports in Dubai and Singapore. The Airports Authority of India (AAI) opposed the ADF, citing it as a capital receipt, and discussions with DIAL and AAI have not been commented on. In contrast, the UDF will be part of the total revenue, with 46% shared with the AAI under the privatisation agreement of 2006. The decision not to allow the ADF levy was influenced by past criticism from the Supreme Court and the Comptroller and Auditor General (CAG). The government officials emphasised caution, citing previous controversies over ADF for runway and terminal construction. DIAL will now explore other funding options, and one possibility is to increase the number of stops from four to six to boost paying passenger numbers. The air train will remain free for transit passengers. The original plan was for four stops at T3, cargo terminal, Aerocity, and T1, with a transit time of 8-10 minutes. However, the project may be adjusted to include two more stops at Aerocity for increased revenue.

Next Story
Infrastructure Urban

Snowman Logistics Adds New Facility in Kundli, Expands Capacity

Snowman Logistics, a leading temperature-controlled logistics service provider, has commenced operations at a new warehousing facility in Kundli, located in the Delhi NCR region. The facility, taken on long-term lease, adds 3,576 pallet positions to the company's overall capacity, which now stands at 154,330 pallet positions across 44 warehouses in 21 cities.In addition to its warehousing infrastructure, Snowman operates a fleet comprising 296 company-owned and over 325 leased refrigerated vehicles, ensuring comprehensive cold chain connectivity across the country.The Kundli facility is strate..

Next Story
Real Estate

Omaxe Plans Rs 12-Bn Township Project in Indore

Omaxe has acquired 450 acres of land in Indore, Madhya Pradesh, to develop an integrated township, marking a significant expansion of its operations in Tier-II cities. The project will entail an investment of Rs 12 billion and is expected to be executed in phases.According to a regulatory filing, the development will comprise residential plots, housing clusters, commercial and retail zones, hospitality infrastructure, educational institutions, and healthcare facilities. The company anticipates generating revenue of Rs 25 billion from the township over the next three years. The investment will ..

Next Story
Resources

SMIORE Becomes First in India to Win Seven Star Mining Award

The Sandur Manganese & Iron Ores (SMIORE) has been awarded the prestigious Seven Star Rating by the Ministry of Mines and the Indian Bureau of Mines (IBM) for exemplary green mining practices in 2023–24. The award was presented at the national felicitation ceremony held at the Rajasthan International Centre in Jaipur on July 7, 2025. SMIORE is the first among three mines nationwide—and the only one from South India—to receive the Seven Star Rating this year. The company has also secured the Five Star Rating for its Kammathuru Iron Ore Mine in Ballari district, Karnataka, marking..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?