The Hindu Business Line : Airports regulatory authority may get power to determine tariffs

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New Delhi Jan 25 The Airports Economic Regulatory Authority (AERA), which is being set up by the Government to ensure a level-playing field major airports and bring about competition between them, is likely to have the power to determine tariffs once in five years.

The draft AERA Bill that is likely to be considered by the Union Cabinet shortly has proposed that the authority may amend the tariff from time to time during the five years if considered appropriate.

The need for a regulator is felt now as several major airports are to be managed by the private sector. While the airport in Kochi, promoted by the private sector, has already started functioning, the airports in Delhi, Mumbai, Bangalore and Hyderabad that are being developed through public-private partnership are expected to become operational by 2008.

The proposed authority will also try and promote investment in airports. It would deal with issues regarding the level of charges for route navigation facilities (RNFC), terminal navigation and landing, among others.

Appellate Tribunal

The Bill also proposes the setting up of an Appellate Tribunal with the power to levy hefty fines on defaulting individuals and companies.

Specifically, the Bill proposes that if any person wilfully defaults to comply with the order of the Tribunal, they should be punished with fine up to Rs 100,000.

The fine could be doubled in case of a second or subsequent offence. Furthermore, it is proposed that in case of continuing contravention, the defaulter could be additionally fined as high as Rs 200,000 for every day during which the default continues.

In case the offence is committed by a company, it is proposed that every person who was in charge of and responsible for conduct of the business at the time of offence be held responsible, apart from the company itself.

The Authority would consist of a chairperson and two persons to be appointed by the Central Government from among people with adequate knowledge and professional experience in aviation, economics, commerce or consumer affairs.

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