Home / News / Adani-owned MIA seeks hike in user development fee
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The Adani Airports-owned Mangaluru International Airport (MIA) has sought an immediate hike in the user development fee. The MIA has sought an increase of 100 in user development fee (UDF) on domestic passengers to facilitate development activities.

The international airport in Mangaluru has also requested permission to levy the fee on both arriving and departing passengers.

The airport, in its latest tariff filing, has sought to levy a user development fee of 250 on domestic passengers starting this October. The airport is gradually planning to increase it to 725 by March 31, 2026.

The Airports Economic Regulatory Authority of India (AERA), the tariff-fixing body, is in the process of fixing tariff for Mangaluru airport for the period of April 1, 2021, to March 31, 2026.

For international passengers, it has sought to levy a user development fee of 525. It is planning it to increase it to 1,200 by March 2026.

If the AERA agrees, the users development fee will be charged on both departing and arriving passengers. Currently, the UDF, which is 150 for the domestic passengers and 825 for the international passengers, is charged only on the departing passengers.

The Adani Group took over the operations of the international airport in the Karnataka port city on October 31, 2020. In its filing with the pricing regulator, the airport said no tariff revision had taken place since 2010. Meanwhile, the plan to modernise the airport if also underway.

The cumulative impact of these considerations will have a consequential impact on the tariff, it said. The proposed developmental projects, including recarpeting of the runway, and construction of a new terminal building and cargo terminal, is estimated to cost about 5,200 crore.

The airport said it will fund these through debt and equity from parent Adani Enterprise. The airport has also sought increase in landing and parking charges for airlines. The AERA has sought comment from airlines, passenger associations and business jet operators.

(With agency inputs)

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