AAI advisor calls for longer airport tariff control period, says five years insufficient for investment recovery
New Delhi, Aug. 13 -- The government should consider extending the five-year control period for airport tariff assessment to seven or even 10 years, said Nadiminti Venkata Subbarayudu, Advisor (PPP), Airports Authority of India (AAI), arguing that large airport investments in terminal buildings and runways cannot be recovered within such a short period and that a longer period would help keep User Development Fees (UDF) at reasonable levels.
Subbarayudu said the existing five-year tariff control period may not provide sufficient time for airport developers to recover investments, which typically involve large lump-sum amounts.
"The regulatory authorities have now kept the control period for five years. They assess the investment need an...
Click here to read full article from source
To read the full article or to get the complete feed from this publication, please
Contact Us.