Interest fee

mial: Mumbai airport development fee extended until June 30; mismatch in collection amount in MIAL and AAI records

NEW DELHI: Passengers departing from Mumbai will continue to pay the Development Charge (DF) until June 30, 2022. The Airports Economic Regulatory Authority (AERA) has extended the tax of Rs 120 and Rs 720 per domestic passenger and international departing, respectively, from March 31, 2022 until the end of June on an interim basis.
The regulator has also ordered the Airports Authority of India (AAI) to “review all issues raised by Mumbai International Airport Ltd (MIAL)” on the matter by May 15.
AERA had in December 2012 sanctioned the charging of a DF of Rs 100 and Rs 600 per departing domestic and international passenger, respectively, until April 30, 2021, to fund a deficit of Rs 3,845 crore in the proposed improving the capacity of Chhatrapati Shivaji Maharaj International Airport (CSMIA). .
Subsequently, in January 2016, it authorized a levy of Rs 20 and Rs 120 per departing domestic and international passenger, respectively, until March 31, 2021, to finance metro works at the airport worth of Rs 518 crore. These two levies have been merged to become Rs 120 and Rs 720 per departing national and international passenger.
When Covid severely affected airport traffic and collection suffered greatly, AERA had, at the request of MIAL, extended these two collections until March 31, 2022. An AERA order dated 28 March 2022 states: “A new request has been received from MIAL for the extension of the collection period…due to shortfall in collection…beyond March 31, 2022 on a provisional basis.
A letter was sent to AAI on January 25, 2022 for (its) comments regarding the annual DF collected from passengers, the amount paid to MIAL, interest payment, usage details…”
AAI had told AERA in March that “DF to be billed as of September 30, 2021 is Rs 401.9 crore. However, according to MIAL, billable DF (as of this date) is Rs 1459 crore. Additionally (AAI informed) MDF (Metro DF) to be billed by MIAL effective September 30, 2021, is Rs 89.6 crore. MIAL had claimed an exceptional MDF as of September 30, 2021, amounting to Rs 106.8 crore. In addition, AAI has pointed to certain significant issues in the DF and MDF audit reports and in the MIAL claim, which need to be addressed,” the order states.
“In view of the lack of time to resolve the issues and reconcile the figures”, the order states “that it is necessary to extend the DF levy beyond March 2022, to recover the amount of the sanctioned DF. By Therefore, it is decided to extend the DF levy until June 30, 2022. In the meantime, the position will be reviewed and further measures/orders will be issued based on this review.
AERA ordered AAI to review all issues raised by MIAL by May 15 and also asked the airport operator to “provide all required documents to AAI in this regard.”