Home India Ministry of Civil Aviation Parliament Question: Charges of User Development Fee...
Date: 2025-07-31 Category: Not Applicable State: Union Government Country: India

Parliament Question: Charges of User Development Fee

Issued by Ministry of Civil Aviation · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document presents the Ministry of Civil Aviation's response to Lok Sabha Unstarred Question No. 1862 regarding User Development Fees (UDF). It details the UDF determined by the Airports Economic Regulatory Authority (AERA) for major airports in India, including Mangalore Airport, for the fiscal year 2025-26. The UDF rates provided are exclusive of GST. Key Points / Main Content: * **Regulatory Authority:** * The Airports Economic Regulatory Authority of India (AERA) determines aeronautical charges, including UDF, for major airports. * AERA considers factors such as return on investment, operating expenditure, depreciation, and taxes when determining UDF. * **Mangalore Airport UDF (FY 2025-26):** * Embarking Domestic Passenger: Rs. 735 (exclusive of GST) * Disembarking Domestic Passenger: Rs. 315 (exclusive of GST) * **UDF for Other Major Airports (FY 2025-26):** * UDF amounts for international and domestic passengers at various major airports are listed in the annexure, exclusive of GST. * Examples include Delhi, Mumbai, Bengaluru, Hyderabad, Ahmedabad, and others. * **GST Applicability:** * GST is applicable on the UDF charges as per the prevalent rates fixed by the Ministry of Finance/GST Council. * **New and Developing Airports:** * AERA has determined ad-hoc tariffs for Navi Mumbai International Airport applicable from the Commercial Date of Operations (COD) up to 31.03.2026 or until regular tariff determination, whichever is earlier. * Tariff determination for Dehradun, Port Blair, and Nagpur airports has not been completed, as their first control period is yet to commence. Impact Analysis: * **Airports Economic Regulatory Authority (AERA):** * Impact: Responsible for determining and regulating UDF rates for major airports in India, ensuring consideration of relevant financial factors. * Action Required: Continue to determine and update UDF rates for major airports as per the AERA Act, 2008. * **Airport Operators:** * Impact: Required to collect UDF from passengers at the rates determined by AERA and manage revenue accordingly. * Action Required: Implement the UDF rates specified for FY 2025-26, including applying GST as per applicable regulations. * **Passengers (Domestic and International):** * Impact: Passengers will be charged UDF at the specified rates when embarking or disembarking at major airports in India. The UDF contributes to the funding of airport infrastructure and services. * Action Required: Be aware of the applicable UDF rates when traveling through major airports. * **Ministry of Civil Aviation:** * Impact: Oversees the regulation of airport charges and ensures compliance with the AERA Act, 2008. * Action Required: Continue to monitor and support AERA's regulatory activities to ensure fair and efficient airport operations. * **Ministry of Finance/GST Council:** * Impact: Responsible for setting the GST rates applicable to UDF and other airport charges. * Action Required: Maintain and communicate the applicable GST rates for UDF.

Key Entities Referenced

User Development Fee: A fee charged to passengers at airports, used for the development and maintenance of airport infrastructure. Mangalore Airport: An airport located in Mangalore, Karnataka, India, subject to User Development Fee regulations. Airports Economic Regulatory Authority AERA: An independent economic regulator in India that determines aeronautical charges, including User Development Fee, for major airports. AERA Act, 2008: The Airports Economic Regulatory Authority of India Act, which established AERA. Ministry of Civil Aviation: The Indian government ministry responsible for the formulation and administration of policies and programs relating to the civil aviation sector. GST Council: The governing body for Goods and Services Tax (GST) in India, responsible for setting GST rates. Lok Sabha: The lower house of the Parliament of India, where the question regarding User Development Fees was raised. New Delhi: National Capital Territory of Delhi, Location of Delhi Airport
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GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION Lok Sabha UNSTARRED QUESTION NO. : 1862 ( TO BE ANSWERED ON THE 31st July 2025 ) CHARGES OF USER DEVELOPMENT FEE 1862. SHRI MATHESWARAN V S Will the Minister of CIVIL AVIATION be pleased to state:- (a) the amount of User Development Fee (UDF) inclusive of GST charged at Mangalore Airport embarking domestic passengers as on 11.06.2025; (b) the amount of UDF inclusive of GST charged at Mangalore Airport disembarking domestic passengers as on 11.06.2025; and (c) the amount of UDF fixed by the Airports Economic Regulatory Authority (AERA) for all airports, inclusive of GST or exclusive of GST? ANSWER Minister of State in the Ministry of CIVIL AVIATION (Shri Murlidhar Mohol) (a) & (b): Government of India has set up an Independent Economic Regulator namely, Airports Economic Regulatory Authority of India (AERA) under the AERA Act, 2008. AERA determines aeronautical charges including User Development Fee (UDF) in respect of all the major airports inter-alia considering the factors such as Return on Investment for aeronautical assets, Operating expenditure, Depreciation,Tax, etc.;; ; UDF has been determined for Mangalore Airport by AERA for the 5 Year Control Period (01.04.2021 - 31.03.2026). For FY 2025-26, the UDF for Mangalore Airport is as under: ; (i) Embarking Domestic Passenger: Rs. 735(ii) Disembarking Domestic Passenger: Rs. 315 The above UDF is exclusive of GST charges. GST as per prevalent rates as fixed by the Ministry of Finance/GST Council is generally applicable on the above charges. ; ; (c): The amount of UDF, exclusive of GST, as determined by AERA for all Major Airports for the FY 2025-26 is at Annexure. ******Annexure Statement referred in reply of Lok Sabha Unstarred Question No. 1862 dated 31.07.2025 Amount of UDF, exclusive of GST, as determined by AERA for all Major Airports for the FY 2025-26 (In Rs. Per Pax) FY 2025-26 Sr. Name of Airports Type of Pax Intl. No. Dom. Economy Business Embarking 129 650 810 1 DELHI Disembarking 56 275 345 Embarking 175 615 695 2 MUMBAI Disembarking 75 260 304 3 BENGALURU Embarking 550 1500 4 HYDERABAD Embarking 750 1500 5 AHMEDABAD Embarking 600 1190 6 AMRITSAR Embarking 381 992 7 BHUBANESHWAR Embarking 850 860 8 CALICUT Embarking 440 740 9 CHANDIGARH Embarking 725 1550 10 CHENNAI Embarking 455 690 11 COCHIN Embarking 270 570 12 COIMBATORE Embarking 550 710 13 GOA-DABOLIM Embarking 570 900 Embarking 625 980 14 GUWAHATI Disembarking 265 420 15 INDORE Embarking 650 700 Embarking 875 1260 16 JAIPUR Disembarking 375 540 17 KANNUR Embarking 850 1798 18 KOLKATA Embarking 644 1547 19 LUCKNOW Embarking 950 1480 Embarking 735 1120 20 MANGALORE Disembarking 315 480 Embarking 840 1200 21 MOPA-GOA Disembarking 360 500 22 PATNA Embarking 865 - 23 PUNE Embarking 387 745 24 RAIPUR Embarking 500 - Embarking 650 25 SHIRDI - Disembarking 280 26 SRINAGAR Embarking 1050 1100 Embarking 840 1680 27 TRIVANDRUM Disembarking 360 720 28 TIRUCHIRAPPALLI Embarking 600 80029 VARANASI Embarking 460 1360 *Note: i. Greenfield airports namely, Navi Mumbai International Airport and Noida International Airport are yet to commence their commercial operations. For Navi Mumbai Airport, AERA has determined the Ad-hoc Tariff applicable from Commercial Date of Operations (COD) upto 31.03.2026 or till the determination of regular Aeronautical Tariff whichever is earlier. Adhoc UDF for International passengers - Rs. 1500 for embarking and Rs.750 for disembarking, Domestic passengers – Rs. 840 for embarking and Rs. 360 for disembarking. ii. Tariff determination for three recently designated/notified Major Airports namely, Dehradun, Port Blair and Nagpur have not been determined by AERA, as their first control period is yet to commence. ****

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