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Decision put off on Bill for airport regulator

Our Bureau

New Delhi , June 29

The Union Cabinet on Thursday deferred a decision on the proposed Bill for setting up the Airport Economic Regulatory Authority (AERA).

The proposed regulator is to look into a host of issues including determining tariffs at the major airports and ensuring that there is a level playing field among all airports.

Official sources said that the delay in receiving the recommendations of the Ministry of Defence led to the Cabinet not considering the proposal today.

The proposal is now likely to be taken up by the Cabinet next week, they added.

After Cabinet approval, the proposal would have to be cleared by Parliament before it can be made law.

AERA, which is to be modelled on the lines of the TRAI, is to look into a variety of subjects including encouraging investment in airport facilities and ensuring that interest of the users is protected at all major airports.

Any airport that handles more than 1.5 million passengers annually would qualify as a major airport, sources said.

In addition, the authority would determine the passenger service fee to be levied on passengers.

The setting up of AERA is considered important as there is bound to be competition among Indian airports for attracting traffic as they pass into private sector hands.

The Government has already started the process of involving the private sector in modernising airports around the country.

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