Bill raises major airport threshold to 3.5 million passengers annually

This Bill amends the Airports Economic Regulatory Authority of India Act, 2008 to increase the passenger threshold for an airport to be classified as a 'major airport' and to allow tariffs to be fixed in bidding documents for private operators without subsequent determination by the Authority.

Who it concerns: The Bill affects the Airports Economic Regulatory Authority of India (AERAI), airports with annual passenger throughput exceeding 3.5 million, private operators entering the sector via Public Private Partnerships, and the Central Government.

What the bill does

• Increases the definition of a 'major airport' from an annual passenger throughput of 1.5 million to 3.5 million.
• Prevents the Authority from determining tariffs or development fees if these amounts are already incorporated in the bidding document used to award operatorship.
• Requires the Authority to be consulted in advance regarding tariffs proposed in bidding documents.
• Mandates that tariffs, tariff structures, or development fees included in bidding documents must be notified in the Official Gazette.

Also in the document

• The Bill is an amendment to the Airports Economic Regulatory Authority of India Act, 2008.
• The Statement of Objects and Reasons states that the changes are intended to provide regulatory certainty for private operators and reduce the regulatory burden on the Authority due to limited resources.