With expansion plans, flying out of Delhi to become costlier
The Delhi International Airport Limited (DIAL) is planning to invest Rs. 9,000 crore in expansion work which will result in a rise of aeronautical charges. The airlines are likely to take the charges in form of landing, parking charges and airport development fees from passengers, meaning flying out of Delhi will become costlier. DIAL has already approached the Airports Economic Regulatory Authority (AERA) as the second concession period is about to expire.
What happens when concession period expires
A concession period lasts five years, and before it ends DIAL has to approach AERA, with details of financial closure, investments planned, and a demand in tariff hike. For 2009-14, AERA allowed 346% rise in aeronautical charges and from 2014 to 2019, it allowed 94% of the same, as no major expansion projects were planned. After consulting stakeholders and airlines, AERA will decide hike in aeronautical charges.
CEO of DIAL speaks on money to be raised
Videh Jaipuriar, CEO of DIAL said a large portion of the money has to be raised from outside. "The government will also have to help facilitate raising funds for expansion," he said at an event about Delhi Airport's economic impacts. A report by the National Council of Applied Economic Research (NCAER) found that Delhi Airport helped in creating jobs in agriculture and unorganized sectors.
Findings: What the report concluded about Delhi Airport
The report concluded 28 lakh direct, indirect and induced jobs have been created and by 2025 the number may reach 40 lakh. After speaking to 3,500 passengers, the report found that there were more women passengers in the age group of 26-35 than men.
