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Navi Mumbai’s Airport Fee Puts Spotlight On Rising Passenger Cost Burden

What?

Passengers flying out of the yet-to-be-functional Navi Mumbai International Airport (NMIA) will have to pay among the highest User Development Fees (UDF) in India, sparking sharp criticism from industry experts over affordability, transparency, and lack of competition in Mumbai's airport ecosystem.

“They’re defeating the Prime Minister’s vision of Ude Desh ka Aam Nagrik (UDAN Scheme),” CK Govil, president of the Air Cargo Agents Association of India (ACAAI), told The Core.

Set to open later this year, NMIA will charge outbound domestic passengers Rs 620 and international flyers Rs 1,225 as UDF. Even arriving passengers won’t be spared — Rs 270 and Rs 525 will be levied on domestic and overseas arrivals, respectively.

While Delhi has the highest international UDF at Rs 1,300, NMIA’s domestic charge tops the list. Here’s how the major airports compare:

Why?

Adding fuel to the controversy is the fact that both Mumbai’s current airport — Chhatrapati Shivaji Maharaj International Airport (CSMIA) — and the upcoming Navi Mumbai airport are owned by the Adani Group.

“The monopoly is very clear,” Govil said. “By 2030, when the lease on Mumbai airport ends, Adani could hike costs — landing fees and other charges — to make Navi Mumbai cheaper by comparison. Passengers will have no choice but to shift to the Navi Mumbai airport.”

The lack of competitive pricing between two airports in the same metro region has been flagged as a structural concern.

“There has to be some director from the government to ask the airports, look at what extra are they doing with that fee. What exactly are passengers paying for? Can the operator break it down and justify the fee?” Dr Vandana Singh, chairperson the the Aviation Cargo Federation of Aviation Industry in India (FAII), told The Core.

How is the fee set and who decides?

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Rs 265.25 crore

That’s the tax shortfall Voltas is accused of underpaying, according to a show cause notice from the Central GST authorities, The Economic Times reported.

📌 The details:

• The alleged short payment pertains to FY 2018–19 to 2020–21.

• It involves Universal Comfort Products Ltd., which merged with Voltas in FY 2020–21.

• The notice was issued by the Principal Commissioner, Central GST Commissionerate, Dehradun.

🧾 Why it matters:

• The notice invokes provisions of the Central Goods and Services Tax (CGST) Act, Uttarakhand Goods and Services Tax (GST) Act, and Integrated Goods and Services Tax (IGST) Act.

• It seeks an explanation for the alleged shortfall and threatens interest and penalties.

💬 Voltas says it is evaluating the matter and will respond within the stipulated timeline.

Ambani Loan Fallout: The State Bank of India has flagged Reliance Communications’ (RCOM) loan account as “fraud” and intends to report former director Anil Ambani to the RBI. The bank cited fund diversion and loan term violations following forensic audits and show cause notices.

Backdrop: The loans date back to before RCOM’s entry into insolvency in 2019. The company, under a court-appointed resolution professional, has had a creditor-approved resolution plan pending final clearance by the NCLT.

Implications: RCOM says it is protected under Section 32A of the IBC and is seeking legal advice on SBI’s move amid ongoing insolvency proceedings.

India’s Telco Conundrum: India’s current telecom duopoly, dominated by Reliance Jio and Bharti Airtel, wasn’t created by policy but by market realities and huge capital requirements, said Minister of State for Communications Chandra Sekhar Pemmasani in a CNBC TV18 interview at the India Mobile Congress roadshow.

Key points: The government wants four to five strong telecom players and is supporting Vodafone Idea and BSNL. It converted nearly Rs 36,000 crore of Vodafone Idea’s dues into equity but noted its ongoing struggles. BSNL’s revival is slow due to focus on local tech development.

Context: This ties directly to BSNL’s many stalled or failed revival efforts, including a Rs 132 crore consultancy plan involving Boston Consulting Group, for which the government spent heavily without delivering concrete solutions.

Govt's New Cab Rules: The Centre has allowed cab aggregators like Ola, Uber, and Rapido to charge up to twice the base fare during peak hours (earlier 1.5x) and no less than 50% during off-peak hours, under the revised Motor Vehicle Aggregator Guidelines 2025.

Why It Matters: This move could raise ride costs at a time when fuel bans on older vehicles in some states are already pushing up expenses.

The Fine Print: Drivers will now face a 10% penalty (max Rs 100) for unjustified cancellations. States must adopt these new rules within three months.

Studying in the US Could Become More Annoying! The US Department of Homeland Security has revived a Trump-era proposal to replace the current “duration of status” (D/S) system for F‑1 and J‑1 visas with a fixed stay period, for two to four years. 

Backdrop: Under the existing D/S policy, Indian students can legally remain in the US as long as they follow their programme rules—even if their visa stamp expires. 

The Shift: The proposed rule would require them to apply for extensions to complete multi‑year or research-heavy courses, introducing extra paperwork, fees, delays and risk of accruing unlawful presence. This move could affect India’s 420,000+ international student cohort, many in research-heavy and long STEM and doctoral programmes.

PODCAST

On Episode 622 of The Core Report, financial journalist Govindraj Ethiraj talks to Garima Kapoor, Economist & Executive Vice President at Elara Securities (India) as well as Sunil Thakur, Partner at Quadria Capital.

• Markets fall as tariff fears return closer to July 9 deadline

• India plans three new strategic oil reserves, oil prices rise

• Government spending jumps in the first quarter, will the economy see a bump up?

• Investments into hospital chains are accelerating, what is driving this latest surge?

• Foxconn pulls Chinese staffers from India in surprise move

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas