Government proposes new financial model for greenfield airports

The central government has proposed a new financial model for building greenfield airports in the country. Under the new model, the concession fee will be paid to the concessioning authority on the “per passenger aeronautical” model. Further, the landing and parking charges for aircraft will be fixed at all greenfield airports. The concession period will be 40 years and the total aeronautical tariff charged by the airport operator will not exceed Rs 400 per passenger. Besides, there will be a moratorium on the concession fee for three years from the commercial operation date of the airport. The tariff will also be partially adjusted for inflation annually.