The move is likely to benefit current airport operators in Delhi and Mumbai. On the other hand, the Airport Authority of India (AAI) is likely to be a permanent loser if the proposed amendments get the government's nod, reports CNBC-TV18's Siddharth Zarabi.
User Development Fee (UDF) was levied as a facility for development of airports. UDF was Rs 3800 crore in Delhi and Rs 700 crore in Mumbai between 2009 and 2013.
The proposal is that aircraft rules should be amended, which has already raised some concerns within the civil aviation policy establishment.
This amendment would essentially remove UDF, which is part of the revenue that has to be shared by the airport operator with the Airport Authority of India (AAI).
No decision has been taken yet, but there are several people in the civil aviation policy establishment who are deeply concerned about this move, and are likely to raise complaints.
The legal aspect is very clear. Unless a policy decision is taken, no other authority can step in.
But for now the news is that if this amendment is to go through, it would be seen as something that would deprive AAI of its rightful revenue share and lead to some sort of windfall gains to the private operators at Delhi and Mumbai International Airport.
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