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B'luru airport hikes user fee by a massive 120%

BENGALURU: Flying out from the Bengaluru airport might be costlier by means of a massive 120 p.c from Tuesday following the Airports Economic Regulatory Authority of India (Aera) allowing it to revise upwards the consumer building rate (UDF) for four months.
The nation's third busiest airport after New Delhi and Mumbai plans to use the additional rate to fund its expansion.

"With the Aera order coming into effect from April 16, the UDF for domestic departures will be revised to Rs 306 from Rs 139 while for international departures it will be Rs 1,226 from Rs 558 earlier," Bengaluru airport authority said in a remark on Monday.

The new fees for domestic and global shuttle translate into an increase of 120 per cent and 119 per cent, respectively, it added.

The revised rate is appropriate for tickets procured between April 16 and August 15, it said including the higher rate might be rolled back from August 16.

The Rs 13,000 crore second segment expansion includes construction of a new terminal, a second runway, get right of entry to roads, and a multi-modal shipping hub, company said, including, these work is scheduled to be finished by means of March 2021.

"This incremental increase in charges will provide us with the much-needed relief as we are in the midst of a Rs 13,000-crore capacity expansion," said Hari Marar, managing director and chief government, Bangalore International Airport Ltd.

As mandated by means of Aera, the money generated from the incremental UDF hike all through these four months, might be deposited in a separate bank account and might be used most effective to fund the continuing expansion, he added.

The Kempegowda International Airport started operations in May 2008 and is the second airport construct on a PPP style after Kochi, which was once commissioned within the past due 1990s. The airport treated 26.91 million passengers in FY18 and is likely one of the quickest growing on the earth.

Canadian NRI Prem Watsa-run Fairfax owns 54 per cent within the airport and Siemens Projects Ventures 20 grasp per cent. Of the rest 26 per cent, Karnataka govt and the Airports Authority grasp 13 per cent each, respectively.

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