The Ministry of Civil Aviation has refused permission to Delhi International Airport Ltd (DIAL) to impose an Airport Development Fee (ADF) to fund the Rs 3,500 crore elevated air train corridor connecting its three terminals. Instead, the government has instructed DIAL, operated by the GMR Group, to explore alternative means of funding and to later impose a User Development Fee (UDF) once the train is operational.
DIAL is now considering external funding through debt or equity, aiming to connect the three terminals and enhance Delhi’s status as a hub similar to airports in Dubai and Singapore. The ADF, a pre-funding mechanism, faced opposition from the Airports Authority of India (AAI), citing it as a capital receipt.
In response, DIAL will explore other funding options, potentially redesigning the project to ensure faster returns for financiers. One option includes increasing the number of stops from four to six, allowing for more paying passengers and quicker recoveries. The air train will be free for transit passengers.
