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AERA Amendment Bill, 2021

Context:

The Lok Sabha passed the Airports Economic Regulatory Authority of India (AERA) Amendment Bill, 2021 (without any discussions due to disruptions).

Relevance:

GS-III: Industry and Infrastructure, GS-III: Indian Economy (Growth & Development of Indian Economy, Government Policies & Interventions)

Dimensions of the Article:

  1. Airports Economic Regulatory Authority of India (AERA)
  2. AERA Amendment Bill, 2021

Airports Economic Regulatory Authority of India (AERA)

  • The Airports Economic Regulatory Authority of India Act, 2008 established the Statutory body – Airports Economic Regulatory Authority of India (AERA).
  • AERA was established to ensure that private airport operators do not misuse their monopoly, the need for an independent tariff regulator in the airport sector was felt.
  • AERA regulates tariffs and other charges for aeronautical services provided at civilian airports with annual traffic above 15 lakh passengers.
  • It also monitors the performance standard of services across these airports.

AERA Amendment Bill, 2021

  • The AERA Amendment Bill, 2021 proposes to amend the definition of major airport to include a group of airports.
  • It will allow AERA to regulate tariff and other charges for aeronautical services for not just major airports with annual passenger traffic of more than 35 lakh, but also a group of airports.
  • The government will be able to club profitable and non-profitable airports as a combination/package to bidders to make it a viable combination for investment under PPP (Public-Private Partnership) mode.
  • It will help in expanding the air connectivity to relatively remote areas and as a result, expediting the UDAN regional connectivity scheme.
  • Lack of clarity in the bill on the criterion for deciding which airports will be clubbed together to qualify under ‘a group of airports’ definition, whether it will be the passenger traffic of more than 3.5 million or some other factors too.

-Source: The Hindu

March 2024
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