Airports Economic Regulatory Authority of India (Amendment) Act, 2021 - Bill
No: 77 Dated: Mar, 24 2021
Airports Economic Regulatory Authority of India Act, 2008
Airports Economic Regulatory Authority of India (Amendment) Act, 2021
Bill No 77 of 2021
A Bill further to amend the Airports Economic Regulatory Authority of India Act, 2008.
BE it enacted by Parliament in the Seventy-second Year of the Republic of India as follows:—
1. Short title and commencement:- (1) This Act may be called the Airports Economic Regulatory Authority of India (Amendment) Act, 2021.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. Amendment of Act 27 of 2008:- In section 2 of the Airports Economic Regulatory Authority of India Act, 2008, in clause (i), after the words "any other airport", the words "or a group of airports" shall be inserted
STATEMENT OF OBJECTS AND REASONS
The Airports Economic Regulatory Authority of India Act, 2008 provides for the establishment of an Airports Economic Regulatory Authority to regulate tariff and other charges for the aeronautical services rendered at airports and to monitor performance standards of airports and for matters connected therewith or incidental thereto.
2. Being an independent regulator for protection of the interests of airports, airlines and passengers, the Airports Economic Regulatory Authority of India has, since its inception, been determining the tariffs of aeronautical charges at major airports in the country. Under the said Act, "major airport" has been defined to mean any airport which has, or is designated to have, annual passenger throughput in excess of three and a half million or any other airport as the Central Government may, by notification, specify as such. However, it does not provide for determination of tariff for a group of airports.
3. 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.
4. Accordingly, the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 proposes to amend the definition of "major airport" so as extend its scope to determine the tariff for a group of airports also, which will encourage development of smaller airports.
5. The Bill seeks to achieve the above objectives.