The Siemens consortium that is developing the Rs 2,500 crore new greenfield airport at Devanahalli near Bangalore has decided to cap the contentious user development fee (UDF) levied on passengers, to Rs 955 (plus taxes) for international passengers while it will not charge any UDF to domestic passengers. This UDF will be applicable for the first three months of operations of the airport, during which the civil aviation ministry will study the total expenditure incurred in developing the airport and prescribe an amount.
Sources said the change in stand was due to the pressure exerted by the ministry of civil aviation. The promoters of the airport had ruled out waiving the user development fee (UDF) on passengers, saying it was needed to generate revenue to operate and maintain a world-class airport.
?The UDF is meant to mobilise additional revenue to operate and maintain a world-class airport and invest in the expansion phase to serve 12-15 million passengers annually over the next five years,? Albert Brunner, CEO, Bangalore International Airport Ltd (BIAL) had said a month back. As per the concession agreement signed by the BIAL consortium with the civil aviation ministry in June 2004, the operator is allowed to levy UDF on domestic as well as international passengers embarking from the new airport to be called Bengaluru
International Airport.
The greenfield project is about 37 km from the city. The airport was to begin commercial operations on March 30 but the civil aviation ministry postponed this to a ?suitable date after May 10?.
