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Mumbai Airport Proposes User Fee Hike to Fund INR 10,000 Crore Modernization Plan

The proposed tariff includes a new User Development Fee starting June 2025, alongside reductions in airline landing and parking charges to balance costs.

Mumbai: Indian nationals who were stranded in Singapore arrive by Air India flight at Mumbai International Airport after being evacuated by the government under 'Vande Bharat' mission, during the ongoing COVID-19 lockdown, in Mumbai, Sunday, May 10, 2020. (PTI Photo)(PTI10-05-2020_000260B) (PTI)
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Overview

  • Mumbai International Airport Limited (MIAL) has proposed a User Development Fee (UDF) of INR 325 for domestic passengers and INR 650 for international passengers, effective June 1, 2025.
  • The introduction of the UDF is aimed at funding a five-year, INR 10,000 crore infrastructure development plan to modernize Chhatrapati Shivaji Maharaj International Airport (CSMIA).
  • To offset the impact on passengers, MIAL plans to reduce airline landing and parking charges by 35%, potentially mitigating airfare increases.
  • Key projects include Terminal 1 redevelopment, airside infrastructure upgrades, and the adoption of next-generation digital technologies to enhance passenger experience.
  • MIAL has also committed to sustainability efforts, including transitioning to electric vehicles and achieving net zero emissions by 2029.