In a bid to make the upcoming greenfield airport projects attractive for global players, the Civil Aviation Ministry may amend its regulatory law to fix airport charges in advance, ensuring assured returns to investors at time of participating in the bidding process.
“We are examining how to amend the Airports Economic Regulatory Authority of India (AERA) Act 2008 so that the aeronautical charges are determined upfront or disclosed in the bid document itself for upcoming greenfield airport projects,” Civil Aviation Secretary R.N. Choubey told The Hindu in an interview.
“If aeronautical charges are captured in the bid document of the greenfield airport project itself, there would not be any need for fresh determination of such charges by the regulator (AERA).,” Mr. Choubey said,. He said the proposed law would not impact the regulatory regime at existing airports.
In addition to land, service standards and airport design, the bidding document for greenfield airport projects will specify the airport tariff which will be indexed “appropriately” to factor in inflation, foreign exchange and interest rates.
AERA is a statutory body established in 2009 to determine tariff in respect of airport services provided at major airports across the country. The charges allow operators to get adequate rate of return on the investments incurred on developing and providing services at major airports.
28/06/17 Defence Aviation Post
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“We are examining how to amend the Airports Economic Regulatory Authority of India (AERA) Act 2008 so that the aeronautical charges are determined upfront or disclosed in the bid document itself for upcoming greenfield airport projects,” Civil Aviation Secretary R.N. Choubey told The Hindu in an interview.
“If aeronautical charges are captured in the bid document of the greenfield airport project itself, there would not be any need for fresh determination of such charges by the regulator (AERA).,” Mr. Choubey said,. He said the proposed law would not impact the regulatory regime at existing airports.
In addition to land, service standards and airport design, the bidding document for greenfield airport projects will specify the airport tariff which will be indexed “appropriately” to factor in inflation, foreign exchange and interest rates.
AERA is a statutory body established in 2009 to determine tariff in respect of airport services provided at major airports across the country. The charges allow operators to get adequate rate of return on the investments incurred on developing and providing services at major airports.
28/06/17 Defence Aviation Post
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