GMR, GVK shares drop on scrapping of ADF

Posted By:
Subscribe to GoodReturns

 GMR, GVK shares drop on scrapping of ADF
Shares of Airport Infrastructure players, GMR and GVK both dropped after Civil Aviation Minister Ajit Singh directed the Airports Authority of India (AAI) to infuse additional equity at Delhi and Mumbai Airports in order to abolish Airport Development Fee (ADF).

Shares of GVK power and Infrastructure was deown 3.02% at 13.49, while shares of GMR too were down 3% at 22.05.

Close on the heels of the decision not to levy Airport Development Fee (ADF) at Chennai and Kolkata Airports, Civil Aviation Minister Ajit Singh directed Airports Authority of India (AAI) to infuse more equity in Mumbai International Airport Ltd. (MIAL) and Delhi International Airport Ltd. (DIAL) with the objective of abolishing ADF at Mumbai and Delhi Airports and accordingly submit its proposals to Airports Economic Regulatory Authority (AERA).

Presently Rs. 200/ per domestic passenger and Rs. 1300/ per international passenger are being charged as ADF at Delhi Airport and Rs. 100/ per domestic passenger and Rs. 600/ per international passenger are being charged as ADF at Mumbai Airport. The expected financing gap in case of Mumbai International Airport Ltd. (MIAL) will be approximately Rs. 4200 crore while in case of Delhi International Airport Ltd. (DIAL), it will be approximately Rs. 1175 crore if the ADF is abolished with effect from 1st January 2013.

AERA has uploaded a consultation paper on its website and is in the process of determining ADF and Aeronautical Tariff for Chhatrapati Shivaji International Airport, Mumbai for the regulatory period 1.4.2009 to 31.12.2014. It has asked the AAI the extent to which it would be able to inject additional equity into the project. In response, to this letter of AERA, the Civil Aviation Minister has asked AAI to infuse additional equity of approximately Rs 288 crores in case of Mumbai International Airport Ltd. (MIAL) against its 26% share in equity of MIAL. The balance in financing gap will have to be met by the Airport Operator/ Promoter (MIAL) through infusion of their share of equity.

GoodReturns.in

Read more about: adf
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?