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Aviation ministry meets today to decide UDF policy

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  • In a bid to bring in an element of uniformity on the issue of user development fee (UDF) being charged by some airports and being demanded by others, civil aviation ministry officials will meet on Friday to devise a broad policy on the levy.

    “Besides the Bangalore and Hyderabad greenfield airports currently charging UDF, there are many other airports being revamped through the public- private partnership mode that are demanding permission from the Centre to charge the fee. The meeting will be held to discuss a general policy on UDF,” said an informed source. The meeting will be an internal one and would not include representatives of airport operators or the Airports Authority of India (AAI).

    UDF is an additional charge over the ticket prices that airport developers charge from passengers to part finance development of the respective airport. At Hyderabad’s Rajiv Gandhi International Airport, a fee of Rs 1,000 is collected from all departing international passengers. At Bangalore’s new Devanahalli airport, the UDF is Rs 1,070 per passenger.

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    Besides these airports, a number of other airports run by AAI have also been clamoring for the Centre’s consent to charge the fee. These include the Ahmedabad and Thiruvanathapuram airports, where AAI is said to be spending Rs 421 crore and Rs 138 crore respectively for their modernisation. The GMR-operated New Delhi airport has also been seeking grant to charge UDF, and others like Mumbai and Kochi airports are also keen to use the method to finance their modernisation plans.

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