In News:The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 was introduced in Lok Sabha on March 24, 2021.
The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021
- Ministry: Ministry of Civil Aviation
- It seeks to amend the Airports Economic Regulatory Authority of India Act, 2008. The 2008 Act established the Airport Economic Regulatory Authority (AERA).
- AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India.
- The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.
- The central government may also designate any airport as a major airport by a notification.
- The Bill adds that the central government may group airports and notify the group as a major airport.
- Under the present Act, a”major airport” has been defined to mean any airport which has, or is designated to have, annual passengers in excess of three and a half million. However, it does not provide for determination of tariff for a group of airports.
- Developing more number of airports through public-private partnership mode would expand air connectivity to relatively remote and far-flung areas.
- 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.
About Airport Economic Regulatory Authority (AERA)
- AERA is a regulator that has the powers to set the tariffs charged at airports.
- Sixteen airports will be under the jurisdiction of AERA.
- All the other airports which would not be major airports will continue to be looked after by the Ministry of Civil Aviation and the Govt. of India.
- All major airports with an annual capacity of handling 1.5 million passengers come under the purview of AERA