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Delhi Airport Highlights VAT Discrepancy Amidst Jewar Airport's Looming Traffic Impact

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Delhi Airport Flags VAT Disparity as Jewar Airport Threatens Traffic Shift

GMR Airports Ltd | The company won the bid from Delhi International Airport Ltd to upgrade, modernise and operate Cargo Terminal-1 at Indira Gandhi International Airport, New Delhi. The concession will run on a revenue-share model until 2036, with first full-year revenue share estimated at about ₹340 crore. Shares of GMR Airports ended 3.96% lower at ₹89.60 on the NSE.

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CNBC TV18•27-03-2026, 19:45

Delhi Airport Flags VAT Disparity as Jewar Airport Threatens Traffic Shift

•Delhi International Airport Ltd (DIAL) warns of 13-16% traffic shift to Jewar Airport due to VAT disparity on jet fuel.
•Delhi levies 25% VAT on jet fuel, while Uttar Pradesh (Jewar) charges only 1%, creating a significant cost difference for airlines.
•Airlines could save approximately ₹96,000 per Delhi-Mumbai flight by fueling in UP compared to ₹3,840 in Delhi.
•DIAL urges Delhi government to reduce ATF VAT from 25% to 1-4% to maintain competitiveness and preserve Delhi's hub status.
•IGI Airport contributes 17.89% to Delhi's GSDP and supports over 1.5 lakh jobs, highlighting its economic significance.

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