Parliament Passes Bill To Amend Act Regulating Major Airports In India

To this effect, the Parliament on Wednesday passed the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021.

This short Bill proposes only one amendment to Section 2(i) of the Airports Economic Regulatory Authority of India Act, 2008.

The provision defines "major airport". A major airport is one which has, or is designated to have, annual passenger throughput in excess of 3.5 million. The Central Government may also, by notification, declare any airport as a major airport.

The Act further provides that the tariffs of aeronautical charges at major airports shall be determined by the Airports Economic Regulatory Authority of India.

As per the Civil Aviation Minister Jyotiraditya M. Sindia, since the definition of major airports does not include a group of airports, the Regulatory Authority at present does not determine their tariff.

He added,

"The airports, where currently the traffic potential is low and loss making are not expected to attract reasonable competitive bids. Developing more number of airports through public-private partnership mode would expand air connectivity to relatively remote and far-flung areas. This approach would develop not only the high traffic volume profitable airports but also the low traffic volume non-profitable airports. Therefore, the Government has decided to club or pair airports having profitable and non-profitable airports which could be offered in public-private partnership mode as a package to the prospective bidders."

Accordingly, the Bill proposes to amend Section 2(i) so as extend its scope to determine the tariff for a group of airports also. This will encourage development of smaller airports, the Minister said.