Developers of new airports will have certainty on the aircraft landing and parking fees they can levy, as the government has decided to fix the rates before inviting bids.
The decision will help attract foreign investment as it will eliminate a major regulatory uncertainty that discouraged investors to vie for airport projects in India, aviation industry experts said. Airline executives also welcomed it, saying they will have more visibility on a key recurring cost.
Currently, the Airports Economic Regulatory Authority (AERA) decides the fees at privately run airports. Airport operators and airlines often have complained about tariffs and at least in one instance the Supreme Court had to intervene to implement a rate revision.
"We have the approval from the Union Cabinet to amend the AERA Act, which will allow us to decide charges prior to the bidding of the airport project," said a senior aviation ministry official.
The ministry is still working on the procedures to fix the fees in the pre-bid stage, he said.
The proposed rule will be prospective in nature, and AERA will continue to decide tariffs at airports that are currently in operation or where the projects have already been awarded, the official said.
27/01/18 Mihir Mishra/Economic Times
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The decision will help attract foreign investment as it will eliminate a major regulatory uncertainty that discouraged investors to vie for airport projects in India, aviation industry experts said. Airline executives also welcomed it, saying they will have more visibility on a key recurring cost.
Currently, the Airports Economic Regulatory Authority (AERA) decides the fees at privately run airports. Airport operators and airlines often have complained about tariffs and at least in one instance the Supreme Court had to intervene to implement a rate revision.
"We have the approval from the Union Cabinet to amend the AERA Act, which will allow us to decide charges prior to the bidding of the airport project," said a senior aviation ministry official.
The ministry is still working on the procedures to fix the fees in the pre-bid stage, he said.
The proposed rule will be prospective in nature, and AERA will continue to decide tariffs at airports that are currently in operation or where the projects have already been awarded, the official said.
27/01/18 Mihir Mishra/Economic Times
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