TDSAT rulings favour GMR Airports infrastructure

GMR Airports Infrastructure has secured favorable rulings from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) regarding tariff-related orders issued by the Airports Economic Regulatory Authority (AERA) for the Delhi airport. These rulings cover revised revenue and tax calculations and CSR expense calculations, potentially leading to value creation and improved cash flows for airport operators. The impact of these rulings may extend to other public-private partnership airports, including the Adani-controlled Mumbai airport.

The orders under dispute pertain to three control periods from 2009 to 2024, with the Delhi International Airport facing term discrepancies due to its concession agreement predating the formation of AERA. GMR Airports plans to file a similar application for tariff revision for Hyderabad airport and agitate before TDSAT for favorable outcomes.

Minister of State in the Ministry of Civil Aviation, V K Singh, noted that TDSAT judgments can be challenged in higher courts by AERA if they result in financial implications such as higher aeronautical charges.

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