Bill was introduced in Lok Sabha on 24th March 2021 regarding The Airports Economic Regulatory Authority of India Amendment Act 2021

## Report on the Airports Economic Regulatory Authority of India Amendment Bill, 2021 **1. Executive Summary:** This report analyzes the Airports Economic Regulatory Authority of India Amendment Bill, 2021, based solely on the provided text. This amendment aims to broaden the scope of the Airports Economic Regulatory Authority of India Act, 2008, by extending its regulatory authority to include "a group of airports," rather than only individual major airports. The intended outcome is to encourage the development of smaller, less profitable airports by allowing them to be paired with profitable airports in public-private partnership models. This report details the amendment's provisions, target audience, and anticipated impact. **2. Introduction:** The purpose of this report is to provide an informative analysis of the Airports Economic Regulatory Authority of India Amendment Bill, 2021. This analysis is based exclusively on the provided policy text and aims to outline the key changes, rationale, and potential impact of the amendment. **3. Policy Overview:** * The amendment pertains to the Airports Economic Regulatory Authority of India Act, 2008. * The core objective of this amendment, as stated in the text, is to extend the scope of the Airports Economic Regulatory Authority of India to determine the tariff for "a group of airports." **4. Background and Rationale:** This amendment addresses the issue that the existing Act does not provide for the determination of tariff for a group of airports. The rationale for the amendment stems from the fact that many airports, particularly those in remote areas with low traffic, struggle to attract competitive bids for development. By allowing for the grouping of profitable and non-profitable airports in public-private partnership models, the government hopes to incentivize the development of these smaller, less viable airports. This approach aims to expand air connectivity to remote areas, developing both high-traffic and low-traffic volume airports. **5. Key Provisions / Changes:** This section focuses specifically on the change introduced by the amendment text: * **Original Policy Section Amended:** Section 2 of the Airports Economic Regulatory Authority of India Act, 2008. * **New Rule/Provision:** In clause i of section 2, after the words "any other airport", the words "or a group of airports" shall be inserted. * **Difference/Effect of the Change:** The amendment expands the definition of "major airport" to include a group of airports. This allows the Airports Economic Regulatory Authority of India to regulate tariffs and other charges for aeronautical services rendered at a group of airports, not just individual airports. The intended effect is to make public-private partnership (PPP) projects for airport development more attractive by allowing profitable airports to subsidize less profitable ones within a group. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience and stakeholders directly affected by these specific changes include: * **Airports:** Specifically, airport operators and developers, especially those interested in public-private partnerships involving groups of airports. * **Airlines:** Airlines operating at both major and smaller airports, as tariff regulations will impact their operating costs. * **Passengers:** Passengers traveling to and from airports, as the changes in tariff regulations could indirectly affect ticket prices and service quality. * **The Airports Economic Regulatory Authority of India:** The Authority's responsibilities are expanded to include regulating tariffs for groups of airports. * **The Central Government:** The Central Government is responsible for appointing the date on which the amendment comes into force and specifying airports as "major airports" * **Prospective Bidders:** Companies that could invest in airport development through PPP model **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Airports Economic Regulatory Authority of India is the primary body responsible for implementing the changes related to tariff regulation for groups of airports. The Central Government is responsible for bringing the Act into force. * **Timelines/Procedures:** The amendment will come into force on a date appointed by the Central Government through notification in the Official Gazette. The procedures for determining tariffs for a group of airports will likely be established by the Airports Economic Regulatory Authority of India. These procedures are not explicitly detailed in the provided text. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes introduced by the amendment is: * Increased investment in the development of smaller, less profitable airports through public-private partnership models. * Expanded air connectivity to remote and far-flung areas, as the development of smaller airports becomes more economically viable. * Potential for more balanced regional development, as improved air connectivity can stimulate economic growth in underserved areas. * Greater flexibility for the Airports Economic Regulatory Authority of India in regulating tariffs and promoting the overall development of the airport sector. **9. Conclusion:** The Airports Economic Regulatory Authority of India Amendment Bill, 2021 represents a significant step towards promoting the development of smaller airports and expanding air connectivity across the country. By extending the regulatory authority of the Airports Economic Regulatory Authority of India to include groups of airports, the amendment aims to incentivize public-private partnerships and create a more sustainable and equitable airport ecosystem. The impact of this amendment will be closely watched by airport operators, airlines, passengers, and the broader aviation industry.

Key Entities Referenced