Development fee at Delhi may be scrapped before 36 months | delhi | Hindustan Times
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Development fee at Delhi may be scrapped before 36 months

delhi Updated: Jul 19, 2009 12:34 IST

PTI
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The development fee being levied at the Delhi airport may be withdrawn sooner than the proposed 36 months if the entire Rs 1,826 crore to be collected through the fee is garnered before time.

Delhi International Airport Ltd (DIAL), the GMR-led consortium modernising the capital’s airport, has already taken loans from banks against the fee that is to be collected over a three-year term.

“We wanted the money for the project. On this arrangement that we will be able to raise this much fund (Rs 1826 crore), the banks gave us money so that the project carries on and is complete by March,” said a DIAL official.

When asked how the company will repay the banks if it is unable to collect the entire amount during the period, given the negative growth in passenger traffic, DIAL CEO P S Nair said that the payment can be deferred.

“We can postpone the payments. Supposing we were to repay in the next three years, we can pay in five years,” Nair said.

On the other hand if the consortium collects the entire sum ahead of the deadline, it will scrap the fee even before 36 months, he said.