User fee cut will hit projects at KIA: BIAL CEO

Bengaluru: Various infrastructure projects at the Kempegowda International Airport (KIA) might take a hit if the User Development Fee (UDF) is reduced, a top airport official said on Wednesday. 

Mr Hari Marar, CEO of Bangalore International Airport Limited (BIAL), which operates the KIA, said that they have proposed to the Airports Economic Regulatory Authority (AERA) to maintain the same UDF for the next two-and-a-half years.

Mr Marar told reporters that the airport is witnessing rapid growth in every aspect. “There is a massive increase in passenger traffic and to facilitate the increase in demand, the second terminal and runway work is in progress. We are in the midst of a Rs 12,000 crore expansion plan. This is a crucial phase of expansion plan since the opening of the international airport,” he said.

At KIA, the UDF for domestic passengers is Rs 306, while for international passengers it is Rs 1,226.

During a recent meeting of the Airport Users Consultative Committee (AUCC), a few civic activists and members pointed out that there is a rise in the number of passengers at the airport, the airport is growing and so are the profits. They said that UDF should be reduced, which will help cut fares, and help passengers.

Mr Marar agreed that the airport is growing and so are profits. “But it should be noted that 74 per cent of KIA is owned by private companies, while 26 percent by state and central governments. It doesn’t mean that private companies have a bigger share and they take away the profits. It does not work like that. Private companies get profits, based on what AERA suggests,” he said.

“The money collected through UDF is already being used for the second runway and terminal work. The new connectivity road passes through the second runway and there is a plan to construct tunnel, at an estimated cost of Rs 1,200 crore. The tunnel will pass through the second runway and go towards the parking lot. “If UDF is reduced, we may not be able to carry out this work,” Mr Marar explained

He said that an alternative road to connect the airport with the eastern parts is needed as the lone route through Hebbal is crowded, which could hamper the growth of the airport.

He said, “We've proposed a plan for the suburban railway project. Once the project is through, we will transport customers free of cost to our terminals. We welcome the idea of a Metro Rail for easy access to the airport.

He said that the number of people using the airport will increase from 27 million this year to 80 million in 2028.

“We are also working on various development projects, keeping in mind the growth of the airport in the next 50 years. If the UDF is reduced, there is a possibility of works getting affected. Looking at the works we have planned and carried out for the passenger requirement, we don’t think there is a need for a reduced UDF,” said Mr Marar.