Aviation ministry takes on airport regulator

New Delhi: The civil aviation ministry has waded into battle with the airport regulator, seemingly angered by the watchdog body having sought and received the attorney general’s endorsement of its independence.
The aviation ministry has now asked the law ministry whether its views are binding on the Airport Economic Regulatory Authority, or Aera, according to two aviation ministry officials, who declined to be named. Aera, which was set up in 2009, is drafting the tariff structure for the country’s high-traffic airports, a process that could be held up by the row.
The regulator had sought the opinion of the attorney general in November on whether it would have to follow the aviation ministry’s directions. The attorney general had said that being an independent regulator Aera didn’t need to do so.
Aera is drawing up the tariff structure at a dozen of the country’s key airports, including Delhi, Mumbai, Hyderabad, Bangalore, Chennai and Kolkata, which will see a total $7 billion (Rs31,780 crore) of investment until 2012.
18/02/11 Tarun Shukla/Live Mint

To Read the News in full at Source, Click the Headline

Categories: Airports Feb 2011