HYDERABAD : Airports Economic Regulatory Authority has issued orders scrapping user development fee levied on Indian and international passengers by GMR Hyderabad International Airport Ltd, operator of Hyderabad airport.  Order will be effective from April 1, 2014 and valid till March 31, 2016.

GMR Infrastructure Ltd has 63%, Airports Authority of India and Andhra Pradesh government 13% each and Malaysia Airports Holdings Berhad 11% stake in GMR Hyderabad International Airport Ltd. Currently, Indian passengers departing from Hyderabad airport pay 430 rupees and international passengers are charged 1,700 rupees plus taxes as user development fee, which is aimed at recovering cost of operations.

“the authority has determined UDF (user development fee) as zero with effect from April 1, 2014, till March 31, 2016, for both domestic and international embarking passengers,” airport regulator said in an order posted on its website.

Regulator said decision of UDF determination at zero for 2014-15 and 2015-16 (Apr-Mar) is on account of over-recovery of aeronautical revenues by operator in first three financial years i.e. 2010-11 to 2013-14, regulator said.

Currently, Hyderabad airport also charge five rupees per passenger as collection charges. The Authority also cut passenger service fee to 130 rupees from 200 rupees earlier. The Authority also rejected GMR Hyderabad airport’s proposal to hike domestic landing rates by 10% and international by 25% instead of increasing it by 40% and 100%, respectively, as proposed in their  earlier filing.      -Cogencis

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