User Development Fee
27/July/2017
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
STARRED QUESTION NO: 174
ANSWERED ON:  27.07.2017
User Development Fee
SHASHI THAROOR
 
Will the Minister of



CIVIL AVIATION be pleased to state:-


(a) whether the Government is aware of the sudden and unilateral decision by the Airports Authority of India (AAI) to increase the ?User Development Fee? (UDF) for outgoing passengers from Thiruvananthapuram Airport and if so, the details thereof;

(b) whether the Government is aware that neither of the two other major international airports in proximity, namely Kochi Nedumbassery and Calicut Airports charges such a fee and if so, the details thereof;

(c) whether the Government proposes to review the decision of AAI to increase the UDF, for Thiruvananthapuram airport given that most of the passengers who use this airport are low wage income earners who work in the Gulf to provide vital income back home; and

(d) if so, the details thereof and if not, reasons therefor?


ANSWER
The Minister of CIVIL AVIATION 

(Shri Ashok Gajapathi Raju Pusapati)

(a) to (d): A Statement is laid on the Table of the House.

STATEMENT IN RESPECT OF PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO.174 REGARDING "USER DEVELOPMENT FEE" TO BE ANSWERED ON 27TH JULY, 2017.;; (a) Government of India has established Airports Economic Regulatory Authority (AERA) for regulating tariffs and other charges for the aeronautical services rendered at major airports in the Country. The Aeronautical Tariff, which includes the User Development Fee has been revised by AERA after due consultation with the stakeholders to meet the aggregate revenue requirement for recovery of the cost of development of infrastructure and operating expenses at Thiruvananthapuram Airport. ; ; (b) Yes, Madam. As already stated in reply to (a) above, UDF is levied as a revenue enhancing measure to bridge any revenue shortfall so that the airport operator is able to recover the cost of development of infrastructure and operating expenses at that particular airport and therefore, the UDF varies from airport to airport. ;; (c) & (d): No, Madam. Government does not involve itself in regulation of tariffs and other charges for the aeronautical services rendered at major airports. 


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