Latest news with #AggregateRevenueRequirement
Time of India
08-05-2025
- Business
- Time of India
From May 16, flyers to pay more for tickets as user fee for Mumbai airport hiked
Mumbai: Airfares on domestic and international flights operating to and from Mumbai airport are set to cost more from May 16, as the Airports Economic Regulatory Authority of India (AERA) has approved a hike in User Development Fee (UDF). Like taxes and fuel surcharges, UDF is embedded in the cost of the airline a "Development Fee" of Rs 120 per departing domestic passengers was levied till Aug 2024, the AERA order said. Currently, only the international departing passenger pays a UDF, levied at Rs 187."The UDF will be levied on tickets booked on May 16 and thereafter," clarified an aviation source. The UDF levy will be applicable for flights booked from May 16, 2025, to March 31, the domestic front, a UDF of Rs 175 will be levied on passengers booked on flights departing from Mumbai, and a fee of Rs 75 on those arriving in Mumbai. For international flights, the UDF fee is split further based on the class booked. International departing economy class passengers will pay a UDF of Rs 615, while those arriving will pay Rs 260. For international business class passengers, the fee is Rs 695 and Rs 304 for embarking and disembarking passengers, this, the cost of one domestic ticket to and from Mumbai will go up by Rs 250, international economy return tickets will increase by Rs 875, and for business class, the hike will be Rs 999. However, if you already booked air tickets on flights departing or arriving in Mumbai post-May 16, you do not have to pay this UDF. Those booking air tickets in the next week will also be a UDF for airport facilities is a common practice worldwide, though most airports limit it to departing in its tariff order, stated: "UDF now has been determined for both embarking and disembarking passengers as a significant portion of the airport infrastructure, including aero bridges, travelators, conveyor belts, and arrival facilities inside the terminal building, are also being used by both embarking and disembarking passengers. Therefore, distributing the overall UDF charges between embarking and disembarking passengers in a suitable proportion of their actual usage of airport facilities would lead to an equitable distribution of the tariff burden amongst the users of the airport and would also spread out the costs amongst all airport users." Airports such as Delhi and Thiruvananthapuram also levy a UDF on arriving Mumbai airport operator, in their tariff proposal submitted to AERA for the Aggregate Revenue Requirement (ARR) during 2024-29, entailed an increase of 675% in the prevailing airport charges. "However, AERA, after carrying out a thorough examination of the said proposal, has arrived at a significantly lower ARR that would result in a nominal increase of 21.65% over the existing airport charges. This adjustment will enable the airport operator to meet essential capital expenditure requirements, maintain operational efficiency, and ensure service quality," it on its calculations, AERA arrived at a Yield per Passenger (YPP) of Rs 442 per departing passenger for MIAL and distributed this between domestic and international departing and arriving passengers.
Time of India
29-04-2025
- Business
- Time of India
No power tariff hike in Telangana this year
Hyderabad: Electricity consumers in Telangana will not face any tariff hike in the financial year 2025-26. The Telangana State Electricity Regulatory Commission ( TGERC ) on Tuesday issued orders on the Aggregate Revenue Requirement (ARR) proposals submitted by the Telangana Southern and Northern Power Distribution Companies (TGSPDCL and TGNPDCL). Tired of too many ads? go ad free now TGERC chairperson Devaraju Nagarjun stated that the commission approved an expenditure of Rs 58,628 crore, compared to the Rs 65,849 crore sought by the discoms. While the discoms projected a revenue gap of Rs 20,151 crore, the commission approved a lower gap of Rs 13,122 crore. To support this, the state govt informed the commission it would provide a subsidy of Rs 13,499 crore. This includes funding for free power to the agriculture sector and the newly introduced Gruha Jyothi scheme, which offers up to 200 units of free power to poor domestic consumers. The power subsidy has increased by Rs 1,999 crore— around 17% higher than last year's commitment. The discoms had submitted their ARRs in Jan, and public hearings were held in March. The commission also fixed grid support charges at Rs 18 per kW/month, lower than the Rs 20 per kW/month proposed by the discoms.
