Stories
GMR Airports' DIAL Wins Major Tariff Appeal Against AERA for Delhi Airport
- •GMR Airports' Delhi International Airport Ltd (DIAL) won its appeal against the Airports Economic Regulatory Authority of India (AERA)'s tariff order for Indira Gandhi International Airport.
- •The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) modified several parts of AERA's March 28, 2025 tariff order, directing implementation within three months.
- •The judgment, pronounced on September 18, relates to aeronautical tariffs for the fourth control period (April 1, 2024, to March 31, 2029).
- •TDSAT directed AERA to use DIAL’s actual cost of debt (10.55%) and set aside the minimum revenue threshold for revenue-share assets.
- •The tribunal also ruled that DIAL's actual CSR and legal expenses should be treated as allowable costs, impacting future tariff calculations.
Key Questions Answered
The Telecom Disputes Settlement and Appellate Tribunal modified several parts of AERA's March 28, 2025 tariff order for Delhi's Indira Gandhi International Airport and gave the regulator three months to effect the ruling. The tribunal ruled in favor of DIAL on multiple issues, including the cost of debt, capital expenditure, and operating expenses.
TDSAT directed AERA to use DIAL's actual cost of debt of 10.55% for the true-up of the third control period, replacing the 10.37% figure previously considered by the regulator.
The tribunal set aside AERA's treatment of Rs 21,899.23 crore as a minimum revenue threshold from revenue-share assets for the fourth control period. It directed that true-ups during the fifth control period must rely on DIAL's actual revenue from those assets, regardless of whether it falls above or below the threshold.
