Consultation Paper No. 12/2023-24 In the matter of Determination of Tariff for Ground Handling Services for M/s IndoThai Amritsar Private Limited (ITAPL) at Sri Guru Ram Das Jee International Airport, Amritsar for the First Control Period (FY 2022-23 to FY 2026-27).

फा. सं. ऐरा/20010/एमवाईटीपी/इडं ोथाई/जीएच/अमतृ सर /सीपी-III/2022-27 F. No. AERA/20010/ MYTP/IndoThai/GH/Amritsar/CP-III/2022-27 परामर्श पत्र सख्ं या 12/2023-24 Consultation Paper No. 12/2023-24 भारतीय विमानपत् तन रवथिश विवनयाम ्ावक र Airports Economic Regulatory Authority of India मैससश इडं ोथिाई अमतृ सर ्ाइिेट विवमटेड (रई.टी.ए.पी.एि.) द्वारा श्री गुरू राम दासजी अंतराशष्ट्रीय हिाईअड्डा, अमृतसर में ्दान ी जाने िािी ग्राउंड हैंडविंग सेिाओ ं े विए ्थिम वनयंत्र अिवक (वित् त ि्श 0202-03 से वित् त ि्श 0206-07) े विए टैररफ वनकाशररत रने े मामिे में IN THE MATTER OF DETERMINATION OF TARIFF FOR GROUND HANDLING SERVICES FOR M/s INDOTHAI AMRITSAR PRIVATE LIMITED (ITAPL) AT SRI GURU RAM DAS JEE INTERNATIONAL AIRPORT, AMRITSAR FOR THE FIRST CONTROL PERIOD (FY 2022-23 TO FY 2026-27) जारी रने ी तारीख : 06.09.2023 Date of Issue: 06.09.2023 ऐरा बिब्डंग/AERA Building प्रशासबिक पररसर/Administrative Complex सफदरजंग हवाईअड्डा/Safdarjung Airport िई बद् ली/New Delhi – 110003 Consultation Paper No. 12/2023-24 Page 1 of 30STAKEHOLDERS’ COMMENTS The Authority has released this Consultation Paper, after considering various assumptions stipulated in the Multi-Year Tariff Proposal (‘MYTP’) submitted by the M/s IndoThai Amritsar Private Limited (ITAPL) for providing Ground Handling Services at Sri Guru Ram Dass Jee International Airport, Amritsar. Accordingly, the Authority’s proposals on the various aspects of the Tariff determination process have been explained in detail in this Consultation Paper. Thus, in accordance with the provisions of Section 13(4) of the AERA Act, 2008, the written comments on Consultation Paper No 12/2023-24 dated 06/09/2023 are invited from the . Stakeholders, preferably in electronic form, at the following address: Director (P&S, Tariff), Airports Economic Regulatory Authority of India (AERA), AERA Administrative Complex, Safdarjung Airport, New Delhi – 110003, India. Email: satish.kr@aera.gov.in; inderpal.s@aera.gov.in; prabhjot.marwah@nic.in Copy to: director-ps@aera.gov.in; secretary@aera.gov.in Last date for submission of Stakeholders’ Comments 27/09/2023 Last date for submission of Counter Comments 04/10/2023 Comments will be posted on AERA’s website: www.aera.gov.in For any clarification/information, Director (P&S, Tariff) may be contacted at Telephone No. +91-11-24695048 Consultation Paper No. 12/2023-24 Page 2 of 30TABLE OF CONTENTS CHAPTER 1: INTRODUCTION .............................................................................................................................. 6 CHAPTER 2: PRINCIPLES FOR DETERMINATION OF THE TARIFF FOR AERONAUTICAL SERVICES ....................................................................................................................................... 8 CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) ............................................................... 10 CHAPTER 4: CAPITAL EXPENDITURE ............................................................................................................. 13 CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY ...................................... 16 CHAPTER 6: ANNUAL TARIFF PROPOSAL .................................................................................................... 21 CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS ........................................................................ 25 CHAPTER 8: STAKEHOLDERS' CONSULTATION……….……………………………………..…………….…26 ANNEXURE I: PROPOSED TARIFF RATE CARD FOR SCHEDULED FLIGHTS……….……..………..........27 ANNEXURE II: PROPOSED TARIFF RATE CARD FOR INTERNATIONAL “NON-SCHEDULED AND GENERAL AVIATION OPERATIONS"…….……………….......................................................28 ANNEXURE III: PROPOSED TARIFF RATE CARD FOR ITEM-WISE CHARGES FOR DOMESTIC & INTERNATIONAL FLIGHTS……………………………………………………………..…...29 Consultation Paper No. 12/2023-24 Page 3 of 30LIST OF TABLES Table Particulars Page No. No. 1 Shareholding Structure of M/s ITAPL. 6 Actual Aircraft Traffic handled at Amritsar International Airport during FY 2018- 2 10 19 to FY 2022-23. Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s 3 10 ITAPL for the First Control Period. 4 Projected Capital Expenditure submitted by M/s ITAPL for the First Control Period. 13 Breakup of Capital Expenditure as submitted by M/s ITAPL for the First Control 5 13 Period. Revenue, Operating Expenditure and Profitability projected by M/s ITAPL for the 6 16 First Control Period. Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance 7 17 Expenditure during the First Control Period. Proposed Tariff Rates for Scheduled Flights submitted by M/s ITAPL for the First 8 21 Control Period. YoY Percentage (%) increase in the Tariff rates for the different categories of 9 22 Scheduled Flights in respect of the First Control Period Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ITAPL for the 10 23 First Control Period. Consultation Paper No. 12/2023-24 Page 4 of 30List of Abbreviations: AERA / Authority Airports Economic Regulatory Authority of India ATM Air Traffic Movement ATP Annual Tariff Proposal CAPEX Capital Expenditure COD Commercial Operations Date CGF Cargo Facility, Ground Handling & Supply of Fuel to Aircraft GHA Ground Handling Agencies GHS Ground Handling Services ITAPL IndoThai Amritsar Private Limited INR/₹ Indian Rupees ISP Independent Service Provider LOA Letter of Award MTOW Maximum Take Off Weight MYTP Multi-Year Tariff Proposal OPEX Operating Expenditure O&M Operation and Maintenance PAT Profit After Tax EBIDTA Earnings Before Interest, Depreciation, Tax and Amortization P&L Profit & Loss SPV Special Purpose Vehicle YoY Year on Year Consultation Paper No. 12/2023-24 Page 5 of 30CHAPTER 1: INTRODUCTION 1.1 M/s IndoThai Amritsar Pvt. Ltd. (ITAPL) vide letter dated 24.09.2021 informed the Authority that M/s IndoThai Airport Management Services Pvt. Ltd. had been selected through RFP selection process by Airports Authority of India (AAI) for providing Ground Handling Services at Sri Guru Ram Das Jee International Airport, Amritsar, for a period of 10 years from the Commercial Operations Date (“COD”) subject to an extension by a year at the sole discretion of the AAI. In accordance of clause 5 of Letter of Intent (LOI) dated 19.02.2021, a Special Purpose Vehicle (SPV) “ITAPL” was incorporated on 24.03.2021 for providing Ground Handling Services (GHS) at Amritsar International Airport. 1.2 The shareholding structure of the M/s ITAPL (SPV) is tabulated below: Table-1: Shareholding Structure of M/s ITAPL: Name of Shareholder No. of Equity Shares Equity Holding (%) M/s IndoThai Airport 9900 99% Management Services Pvt. Ltd. Shyam Sundar Malani 100 1% Total 10,000 100% 1.3 Subsequently, M/s ITAPL, vide letter dated 18.05.2022, submitted copies of Certificate of Incorporation of SPV and Security Clearance given by Bureau of Civil Aviation (BCAS). ISP vide above referred letter requested the Authority to allow them to charge the same Tariff, as approved by AERA for the other Ground Handling Service Provider at Amritsar Airport namely, AI Airport Services Limited (earlier known as Air India Airport Services Limited), on ad-hoc basis. Thereafter, M/s ITAPL vide letter dated 10.08.2022 submitted a copy of Concession Agreement dated 08.08.2022, executed between AAI & M/s ITAPL. 1.4 The Authority noted that SPV “ITAPL” has obtained the security clearance from BCAS vide its letter dated 12.05.2022, valid for a period of 5 years, from the date of issue of security clearance. 1.5 Considering the request of M/s ITAPL, the Authority, vide Order No. 17/2022-23 dated 18.08.2022 allowed M/s ITAPL to levy the prevailing tariff for Ground Handling Services as applicable to AI Airport Services Ltd. at Sri Guru Ram Das Jee International Airport, Amritsar, on ad-hoc basis, w.e.f. 22.08.2022 to 31.03.2023. Subsequently, the Authority, vide Order No. 42/2022-23 dated 23.03.2023 extended the ad-hoc tariff (prevailing as on 31.03.2023) for the further period up to 30.09.2023, or, till the finalization of regular tariff for the ISP, whichever is earlier. 1.6 The ISP, vide letter dated 13.06.2023 submitted its Multi Year Tariff Proposal (MYTP) for the determination of Tariff in respect of Ground Handling Services being provided by the service provider at Amritsar International Airport. The Authority during the initial review Consultation Paper No. 12/2023-24 Page 6 of 30of the MYTP observed some shortcomings/ information gaps; accordingly, various clarifications / additional details were sought from the ISP. After regular follow-up, based on the AERA observations, the ISP submitted the revised MYTP for the First Control Period (FY 2022-23 to FY 2026-27) on 19.08.2023. 1.7 The Authority, after having examined the MYTP submission of the M/s ITAPL in detail and taking into account the additional information/clarifications furnished by the ISP, has issued this Consultation Paper for stakeholders’ consultation. Consultation Paper No. 12/2023-24 Page 7 of 30CHAPTER 2: PRINCIPLES FOR DETERMINATION OF THE TARIFF FOR AERONAUTICAL SERVICES 2.1 The Authority, vide Order No. 12/2010-11 dated 10.01.2011, finalized its approach in the matter of Regulatory Philosophy and Approach in Economic Regulation of the Services provided for Cargo Facility, Ground Handling and Supply of Fuel to the Aircraft at the Major Airports. Accordingly, the Authority issued the Airports Economic Regulatory Authority of India (Terms and Conditions for Determination of Tariff for Services provided for Cargo Facility, Ground Handling and supply of Fuel to the Aircraft) Guidelines, 2011 (“CGF Guidelines”), vide its Direction No. 04/2010-11 dated 10.01.2011. 2.2 In accordance with above mentioned AERA CGF Guidelines, the following procedure is adopted for the determination of the Materiality Index of Regulated Service, as per clause 4.4 of the Guidelines: MATERIALITY ASSESSMENT: 𝑰𝒏𝒕. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕 Materiality Index (MI ) = 𝑿𝟏𝟎𝟎 G 𝑻𝒐𝒕𝒂𝒍 𝑰𝒏𝒕𝒍. 𝑨𝒊𝒓𝒄𝒓𝒂𝒇𝒕 𝑴𝒐𝒗𝒆𝒎𝒆𝒏𝒕𝒔 𝒂𝒕 𝑴𝒂𝒋𝒐𝒓 𝑨𝒊𝒓𝒑𝒐𝒓𝒕𝒔 The Materiality Index for Amritsar Airport = 4,692/420772 = 1.12% The percentage share of Amritsar International Airport for FY 2019-20 in respect of International Aircraft Movements is 1.12%, which is less than 5% Materiality Index (MI ) for the subject G regulated service. Hence, the Regulated Service is deemed ‘Not Material’ for the First Control Period at Amritsar International Airport. Considering that the aviation industry was severely affected by the unprecedented event of covid-19 pandemic, the Authority has considered pre- pandemic year i.e. FY 2019-20 for determining Materiality Index of the Regulated Service. 2.3 As per the information furnished by M/s ITAPL in Form F1 (b) on competition Assessment, M/s AI Airport Services Limited (AIASL) is also rendering similar services at Amritsar International Airport. 2.4 As per Clause 3.2 (i) of the CGF Guidelines, wherever the Regulated Service provided is ‘Not Material’, the Authority shall determine Tariff(s) for Service Provider(s) based on a ‘Light Touch Approach’ for the duration of the Control Period, as per the provisions of Chapter V of the Guidelines. 2.5 The tariff determination exercise for the ISP in the instant proposal is being done under the “Light Touch Approach”. However, it is pertinent to mention that even under the Light Touch Approach, the Authority examines the various regulatory building blocks & underlying assumptions/ basis thereof, including projected Revenues, CAPEX, OPEX, Traffic Volumes, etc. considered by the ISP, so as to assess the reasonableness of various projections, including tariff proposed by the Consultation Paper No. 12/2023-24 Page 8 of 30service provider. Accordingly, in accordance with CGF Guidelines (Clause 11.3), wherever required, necessary clarifications/ additional details etc., related to pertinent aspects of the proposal are sought from the service provider. 2.6 As per clause 11.2 of the CGF Guidelines, the Annual Tariff Proposal (ATP) is required to be submitted in the manner and form provided in AI 8.2 of Appendix-I to the Guidelines and should be supported by the following: a) Form B and Form 14 (b) (Proposed Tariff Card); b) Evidence of Consultation with Stakeholders; c) Evidence of User Agreement(s), if any, between the Service Provider and the User of Regulated Service(s) clearly indicating the Tariff proposed by the Service Provider. 2.7 The Authority notes that M/s ITAPL has submitted the Annual Tariff Proposal (ATP) along with its MYTP. The ISP conducted stakeholders’ consultation meetings on 6th March, 2023 and has submitted Minutes of Meetings (MoM) to the Authority. It is observed from MoM that only one stakeholder i.e., the representatives of Batika Air participated in the above referred Meeting. From the MoM, it is not clear whether all the stakeholders were invited for the consultation meeting and relevant information pertaining to MYTP, including tariff proposed for the control period by the ISP, was shared with the stakeholders. 2.8 In view of the above, the ISP is advised to hold the stakeholders’ consultation meeting again and share the relevant information pertaining to the MYTP, including details of proposed Tariff for ground handling services, etc. to the stakeholders, well in advance of scheduled date of meeting, so as to enable the stakeholders to participate in the consultation process a meaningful manner. Further, the ISP to submit the minutes of meeting to the Authority, accordingly. 2.9 Authority’s Proposal regarding Methodology of Tariff Determination for M/s ITAPL: Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s ITAPL, in respect of Ground Handling Services being provided by the ISP at Sri Guru Ram Dass Jee International Airport, Amritsar under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. Consultation Paper No. 12/2023-24 Page 9 of 30CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s ITAPL submission on Projected Aircraft Traffic for the First Control Period 3.1 Actual Aircraft Traffic (No. of Landings) handled at Sri Guru Ram Dass Jee International Airport, Amritsar from FY 2018-19 to FY 2022-23 is given below: Table 2: Actual Aircraft Traffic handled at Amritsar International Airport during FY 2018-19 to FY 2022-23 Total number of Landing at Y-o-Y % increase Amritsar International Airport Year Domestic International Total Domestic International Total 2018-19 6240 2713 8953 -- -- -- 2019-20 6195 2346 8541 -1% -14% -5% 2020-21 3200 809 4008 -48% -66% -53% 2021-22 5391 1361 6752 68% 68% 68% 2022-23 7468 2293 9761 39% 68% 45% 3.2 Projected Aircraft Traffic (flights to be handled by the ISP) for the First Control Period submitted by M/s ITAPL is given below in Table 3. Table 3: Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s ITAPL for the First Control Period. Flights to be handled by M/s ITAPL for the First Control Period Total Y-o-Y % increase Year (No. of Domestic International Landings) (No. of Landings) (No. of Landings) Domestic International Total 2022-23 124 52 176 - - - 2023-24 1540 323 1863 - - - 2024-25 1620 342 1962 5% 6% 5% 2025-26 1700 360 2060 5% 5% 5% 2026-27 1790 380 2170 5% 6% 5% TOTAL 6774 1457 8231 Consultation Paper No. 12/2023-24 Page 10 of 30Authority’s Examination and Analysis: 3.3 The Authority noted that M/s ITAPL, in its MYTP has considered FY 2021-22 as first tariff year and FY 2025-26 as last tariff year of the First Control Period and has based its MYTP projections pertaining to CAPEX, OPEX, Traffic Volumes etc. accordingly. As the ISP started its commercial operations during FY 2022-23 (with effect from 29.08.2022), the Authority considers it prudent to treat FY 2022-23 as the First Tariff Year and FY 2026-27 as the Fifth/Last Tariff Year of the First Control Period (FY 2022-23 to FY 2026-27) for the M/s ITAPL. Accordingly, the ISP was advised to revise its MYTP submission, including Traffic Volumes projected for the First Control Period. 3.4 M/s ITAPL, vide email dated 19.08.2023 submitted its revised aircraft traffic figures for the First Control Period (FY 2022-23 to FY 2026-27). 3.5 The Authority observes that the projected aircraft traffic (flights to be handled by the ISP) shows significant increase in FY 2023-24 as compared with the actual traffic handled by the ISP in FY 2022-23. In this regard, M/s ITAPL vide email dated 22.08.2023 clarified that FY 2022-23 was their first year of operations at Amritsar Airport and the airlines operating at the airport were already having a contract with other Ground Handling Agency, moreover they had operated for 7 months w.e.f. 29.08.2022, which resulted in lower turnaround (flights handled) in FY 2022-23 as compared to succeeding year. As the ISP operated partially during the FY 2022-23, the traffic volume figures for FY 2022-23 are miniscule as compared to subsequent year i.e., FY 2023-24 and it may not be appropriate to compare projected aircraft traffic of FY 2023-24 with actual traffic handled in FY 2022-23. Accordingly, FY 2023-24 has been taken as a base year for year-on-year comparison. 3.6 The Authority notes that M/s ITAPL from FY 2024-25 onward has projected Y-o-Y increase of 5% in total number of flights to be handled, during the remaining tariff years of the Control Period. 3.7 As per the statistics available at AAI website, the total Aircraft Traffic (Domestic and International) at Amritsar International Airport for the FY 2022-23 had surpassed the actual Aircraft Traffic of pre- Covid period (FY 2019-20) at this Airport (Reference Table 2 above). The Authority also notes that during the FY 2022-23, Amritsar International Airport handled 19521 number of landings (both Domestic and International flights) and the ISP has projected 1863 flights (Domestic and International flights) to be handled during the FY 2023-24, which is approx. 19% of the actual number of flights landing at the Airport for the FY 2022-23. 3.8 The Authority notes that the ISP has commenced its commercial operations in the middle of FY 2022- 23 and it will take some time for the ISP to expand its customer base at the airport. Further, taking into account the market competition due to presence of other ground handling agency at the Amritsar Airport, the aircraft traffic volumes (flights to be handled) projected by the ISP for FY 2023-24 to FY 2026-27 seems reasonable. Accordingly, the Authority proposes to consider Aircraft Traffic projections (flights to be handled by the ISP) as submitted by the M/s ITAPL for the last four tariff years (i.e., FYs 2023-24 to FY 2026-27) of the First Control Period as given in Table 3 above. Consultation Paper No. 12/2023-24 Page 11 of 303.9 Authority’s proposal regarding Aircraft Traffic Volumes (Flights to be handled by the ISP) for the First Control Period: Based on the material before it and its analysis, the Authority proposes to consider the Aircraft Traffic (Flights to be handled by the ISP) for the last four tariff years (i.e., FY 2023-24 to 2026-27) of the First Control Period as per the Table 3 above. Consultation Paper No. 12/2023-24 Page 12 of 30CHAPTER 4: CAPITAL EXPENDITURE M/s ITAPL ’s Submission on Capital Expenditure for the First Control Period 4.1 M/s ITAPL has projected a total Capital Expenditure (CAPEX) of ₹ 4069.10 Lakhs for the First Control Period. CAPEX is proposed to be incurred during FY 2023-24 to FY 2026-27. The year- wise Capital Expenditure projected by ISP is given below: Table 4: Projected Capital Expenditure submitted by M/s ITAPL for the First Control Period (₹ in Lakhs) Particulars 2022-23* 2023-24 2024-25 2025-26 2026-27 Total Ground Handling Equipment 1887.85 687.50 217.00 374.60 230.00 3396.95 Vehicles 260.00 170.00 160.00 15.00 10.00 615.00 Furniture and Fittings - 20.00 5.00 2.15 5.00 32.15 Office Equipment - 10.00 5.00 5.00 5.00 25.00 Total 2147.85 887.50 387.00 396.75 250.00 4069.10 *Actual CAPEX incurred in FY 2022-23. 4.2 As part of the MYTP, the ISP has also provided detailed bifurcation of the proposed CAPEX for the First Control Period as under: Table 5: Breakup of Capital Expenditure as submitted by M/s ITAPL for the First Control Period (₹ in Lakhs) Sl. Particulars Cost/ 2022-23 2023-24 2024-25 2025-26 2026-27 no. Unit Total Ground Handling 1. (₹ in lakhs) Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount Equipment: Push Back - Medium 90.00 1 90.00 1 90.00 0 0.00 1 90.00 0 0.00 270.00 Push Back - Heavy 350.00 1 350.00 0 0.00 0 0.00 0 0.00 0 0.00 350.00 Towbar 7.50 4 30.00 0 0.00 2 15.00 2 15.00 1 7.50 67.50 MDL 375.00 1 375.00 0 0.00 0 0.00 0 0.00 0 0.00 375.00 LDL 235.00 2 470.00 0 0.00 0 0.00 0 0.00 0 0.00 470.00 Tugs 25.00 0 0.00 1 25.00 0 0.00 1 25.00 1 25.00 75.00 Electric Baggage 315.00 35.00 6 210.00 0 0.00 2 70.00 1 35.00 0 0.00 Tractors Air Cooler Unit - 110 137.00 137.00 0 0.00 1 137.00 0 0.00 0 0.00 0 0.00 Ton Ground Power Unit - 1 36.00 108.00 36.00 1 36.00 1 36.00 0 0.00 0 0.00 90 KVA Consultation Paper No. 12/2023-24 Page 13 of 30Air start unit - 300 226.00 113.00 1 113.00 1 113.00 0 0.00 0 0.00 0 0.00 ppm Conveyor belt- 70.00 35.00 0 0.00 1 35.00 0 0.00 1 35.00 0 0.00 Electrical (Motorised) Conveyor belt towable 8.00 0 0.00 3 24.00 3 24.00 1 8.00 1 8.00 64.00 Pax step Motorised 1 42.00 168.00 42.00 0 0.00 2 84.00 1 42.00 0 0.00 wide body Towable Pax Step 136.00 8.00 8 64.00 4 32.00 3 24.00 2 16.00 0 0.00 ladder Lavatory truck - 1 20.00 60.00 20.00 1 20.00 0 0.00 0 0.00 1 20.00 Motorised Water truck - 1 20.00 60.00 20.00 1 20.00 0 0.00 0 0.00 1 20.00 Motorised Towable toilet cart 1 4.00 20.00 4.00 1 4.00 0 0.00 1 4.00 2 8.00 WITH MOTOR Towable water cart 1 4.00 20.00 4.00 1 4.00 0 0.00 1 4.00 2 8.00 WITH MOTOR Vaccum Cleaner 0.50 4 2.00 4 2.00 4 2.00 4 2.00 5 2.50 10.50 Pallet Dolly 2.00 16 32.00 14 28.00 0 0.00 10 20.00 5 10.00 90.00 Container Dolly 2.00 14 28.00 16 32.00 16 32.00 5 10.00 5 10.00 112.00 Baggage Trolley - 20 10.00 35.00 0.50 10 5.00 15 7.50 0 0.00 25 12.50 Open Baggage Trolley - 25 16.25 82.55 0.65 26 16.90 26 16.90 0 0.00 50 32.50 Covered Ambulift Towable 12.00 0 0.00 1 12.00 0 0.00 0 0.00 0 0.00 12.00 Fire Extinguisher 5 0.75 2.40 0.15 3 0.45 4 0.60 0 0.00 4 0.60 TROLLEY TRESTLE/LADDER 2.00 3 6.00 0.00 0 0.00 1 2.00 2 4.00 12.00 Wheelchairs 0.20 50 10.00 30 6.00 0 0.00 50 10.00 25 5.00 31.00 Fuel Bowser 1.50 1 1.50 1 1.50 0 0.00 0.00 0 0.00 3.00 Miscellaneous 0.00 5.00 0.00 5.00 5.00 15.00 Total 1887.85 687.50 217.00 374.60 230.00 3396.95 2. Vehicles: Bus/coaches 80.00 3 240.00 2 160.00 2 160.00 - 5.00 0 0.00 565.00 car/Jeeps 10.00 2 20.00 1 10.00 1 10.00 1 10.00 50.00 Total 260.00 170.00 160.00 15.00 10.00 615.00 3. Furniture & Fittings 0 0.00 20.00 5.00 2.15 0 0.00 32.15 4. Office Equipment 0 0.00 10.00 5.00 5.00 0 0.00 25.00 GRAND TOTAL 2147.85 887.50 387.00 396.75 250.00 4069.10 Authority’s Examination of the CAPEX proposed by the ISP: 4.3 The Authority notes that the ISP had incurred a major portion of the CAPEX proposed for the Control Period, during FY 2022-23. Further, out of the total projected CAPEX (₹ 4069.10 lakhs) for the Control Period, M/s ITAPL proposed major CAPEX on the Ground Handling Equipment (₹ 3396.95 lakhs) and procurement of vehicles (₹615 lakhs). Consultation Paper No. 12/2023-24 Page 14 of 304.4 The ISP vide email dated 19.08.2023 stated that they have proposed the CAPEX, considering operational requirements during the Control Period. 4.5 As regard to CAPEX pertaining to the FY 2022-23, the Authority sought the supporting documents towards the actual capex incurred during the referred financial year. In response thereto, M/s ITAPL vide email dated 19.08.2023 shared copies of invoices in respect of the major equipment purchased during the FY 2022-23. 4.6 The Authority observes that the CAPEX proposed by the service provider at the Amritsar airport mainly pertains to the ground handling equipment, vehicles etc., which are considered essential for smooth conduct of ground handling operations at the Airport. Further, the concession agreement also mandates the procurement & maintenance of Ground Handling Equipment and Ground Handling Facilities by the concessionaire (ISP), in accordance with the minimum quality standards, to ensure the timely provision of ground handling services during the term of concession agreement. 4.7 The Authority, based on its examination and analysis notes that the CAPEX proposed during the First Control Period on the Ground Handling Equipment / Facilities etc. is essential for the smooth conduct of business operations. Accordingly, the Authority proposes to consider the CAPEX proposed for the First Control Period as submitted by the ISP (Table 4). 4.8 The Authority, in respect of the CAPEX proposed for the First Control Period, notes that the ISP would be eligible to claim GST Input Tax Credits (ITC) on various movable assets etc. In this regard, the ISP vide email dated 29.08.2023 confirmed that they are availing ITC on Capital Items, wherever available, as per the GST Law. Authority’s Proposal regarding CAPEX proposed for the First Control Period 4.9 Based on the material before it and its analysis, the Authority proposes to consider the projected CAPEX for the First Control Period as per Table 4. Consultation Paper No. 12/2023-24 Page 15 of 30CHAPTER 5: OPERATING EXPENDITURE AND PROJECTED PROFITABILITY ITAPL’s Submission on Operating Expenditure for the First Control Period 5.1 As provided in Clause 9.4 of the CGF Guidelines, the Operation and Maintenance (O&M) Expenditure shall include all expenditures incurred by the Service Provider(s) including expenditure incurred on security operating costs, other mandated operating costs and statutory operating costs. 5.2 Operation and Maintenance Expenditures of M/s ITAPL for its Ground Handling operations at Amritsar International Airport, have been broadly categorized as under: a) Payroll Cost; b) Repair and Maintenance Costs; c) Concession Fee; d) Utilities & Outsourcing, and e) Administrative and General Expenses. 5.3 As per the MYTP submission, Revenue, Operating Expenditure (OPEX) and Profitability projected for the First Control Period (FY 2022-23 to FY 2026-27) by the ISP is as under: Table 6: Revenue, Operating Expenditure and Profitability projected by M/s ITAPL for the First Control Period (₹ in Lakhs) Particulars 2022-23* 2023-24 2024-25 2025-26 2026-27 TOTAL Revenue from Regulated Services (A) 161.56 947.56 1045.76 1149.77 1269.40 4574.05 Operating Expenditure (OPEX) Payroll Cost (i) 63.80 438.69 460.62 483.65 507.84 1954.60 Repair and Maintenance Costs (ii) 4.61 49.00 51.45 54.02 56.72 215.80 Royalty (iii) 258.48 336.02 268.82 215.06 172.04 1250.42 Utilities & Outsourcing (iv) 0.24 1.59 1.67 1.76 1.84 7.11 Administrative & General Expenses (v) 46.60 125.15 131.46 138.08 145.05 586.34 Total OPEX (i+ii+iii+iv+v) = (B) 373.73 950.46 914.02 892.57 883.50 4014.28 Earnings Before Interest, Tax, Depreciation -212.17 -2.89 131.74 257.20 385.91 559.78 and Amortization (EBITDA) (A-B) Depreciation and Amortization 214.79 282.06 292.55 302.97 297.67 1390.04 Interest & Finance Charges 334.27 524.00 634.00 741.00 814.00 3047.27 Profit Before Tax (PBT) -761.23 -808.95 -794.81 -786.77 -725.77 -3877.53 Provision for Tax# 0.00 0.00 0.00 0.00 0.00 0 Profit After Tax (PAT) -761.23 -808.95 -794.81 -786.77 -725.77 -3877.53 *Actual financials of M/s ITAPL *Nil Tax Liability due to projected losses in all years of the Control Period. Consultation Paper No. 12/2023-24 Page 16 of 30Authority’s Examination and Analysis: 5.4 The Authority analyzed the Operating Expenditure provided in Form F3 (P&L) of the MYTP for the First Control Period and observes following Y-o-Y% increase in Revenue & OPEX considered by the ISP as per Table 7 below: Table 7: Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance Expenditure during the First Control Period Particulars 2023-24* 2024-25 2025-26 2026-27 Revenue from Regulated Services (A) 193% 10% 10% 10% Payroll Costs 244% 5% 5% 5% Repair and Maintenance Costs 432% 5% 5% 5% Concession Fee -35% -20% -20% -20% Utilities & Outsourcing Costs 228% 5% 5% 5% Administrative & General Expenses 33% 5% 5% 5% *% increase over the annualized expenses of FY 2022-23 5.5 The Authority’s examination of Y-o-Y % growth considered by the M/s ITAPL for the projected OPEX from FY 2023-24 onward is given in the following sections: a) Payroll Cost: The Authority notes that the ISP has projected Y-o-Y increase of 5% in Payroll Costs from FY 2024-25 onward. The Authority notes that the ISP projected a significant increase in payroll costs in FY 2023-24 when compared with FY 2022-23. In this regard, the Authority notes that the ISP commenced its operation in the middle of FY 2022-23 (w.e.f. 29.08.2022) and had handled a minuscule traffic volume as compared to FY 2023-24, where an increase of 958% in Aircraft Traffic (flights to be handled) has been projected. The Authority is aware that the major payroll costs of the ISP is directly linked with the change in aircraft traffic, resulting in higher payroll costs in FY 2023- 24. Considering the above, the projected increase in payroll costs in FY 2023-24 is reasonable. The Authority notes that projected increase in payroll expenses considered by the ISP is commensurate with the projected increase in aircraft traffic and revenues, and, it factors-in the impact of additional manpower required to meet the projected growth in aircraft traffic. Considering the impact of periodic increase in minimum wages and annual salary increments and related increase in statutory component like EPF etc., the Authority notes that YoY increase projected by the ISP in Payroll expenses for the First Control Period is reasonable. b) Repairs and Maintenance Costs: The Authority notes that ISP has considered Y-o-Y increase of 5% for all the tariff years, except FY 2023-24, where annual increase in R & M Expenses is apparently very high. However, on close examination, it is observed that projected R&M Expenses for FY 2023-24 are appearing higher because of low expense base in FY 2022- 23; as the ISP operated for few months only and had handled just 176 flights during its first year Consultation Paper No. 12/2023-24 Page 17 of 30of operations (FY 2022-23). Further, as per the ISP the equipment acquired in the FY 2022-23 were new and it required preventive maintenance only, resulting in nominal repair and maintenance expenses amounting just ₹ 4.61 lakhs. However, during FY 2023-24 the ISP is expecting huge increase in the level of operations (1863 nos. of flights projected to be handled as against just 176 flights handled during previous year). With the projected steep increase in traffic volumes to be handled, higher wear & tear of equipment is expected, requiring higher repairs & maintenance of equipment and other facilities in FY 2023-24. The Authority notes that overall repair and maintenance costs as % to Opening RAB is ranging between 2.08% to 2.53% during FY 2023-24 to FY 2026-27, as tabulated hereunder: FY FY FY FY Particulars 2023-24 2024-25 2025-26 2026-27 Opening RAB (₹ in lakhs) 1933.07 2538.51 2632.96 2726.74 Repair and Maintenance 49.00 51.45 54.02 56.72 Costs % of Opening RAB 2.53% 2.03% 2.05% 2.08% The Authority considers that in order to provide uninterrupted and better services to users, it is imperative to keep required ground handling equipment and allied facilities in good working conditions all the times. In view of the above and considering the impact of annual general inflation, including annual increase in labour component of the Repair & Maintenance Costs, the projected R&M Expenses for the First Control Period is reasonable. c) Concession Fees: The Authority notes from the concession agreement executed between AAI and M/s ITAPL that the ISP is required to pay concession fees as per the following:  3% of the Actual Gross Revenue from Scheduled Domestic Passenger Flight(s).  15% of the Actual Gross Revenue from Users other than Scheduled Domestic Passenger Flight(s) and RCS Flight(s).  0% for RCS Flights. The Authority further notes from the concession agreement that the concessionaire (ISP) is required to pay premium which is maximum of Minimum Annual Guarantee (MAG) or the revenue share as stated above. In the first year, Concessionaire will pay maximum of Revenue Share or MAG quoted at the time of bid. From the second year onwards, MAG for Concessionaire will be 80% of the previous year’s premium. d) Utilities and Outsourcing Costs: The Authority observes that M/s ITAPL has proposed a Y-o-Y increase of 5% in Utilities and Outsourcing Costs during the First Control Period. The Utility & Outsourcing costs primarily consist of electricity expenses and water charges and the increase in these expenses is linked with the level of flight handling. The Authority notes that YoY increase projected in Utility & Outsourcing costs is commensurate with the projected increase in aircraft traffic and revenue for the control period. Considering the above, the Utility Consultation Paper No. 12/2023-24 Page 18 of 30& Outsourcing costs projected for the First Control Period by the ISP is reasonable. e) Administrative & General Expenditure: The Authority observes that the ISP has considered a Y-o-Y increase of 5% in the Administrative and General Expenditure for all the tariff years of the Control period, except for FY 2023-24, where projected increase in expenses is 166% over the previous year. As regard to projected increase in expenses in FY 2023-24, the Authority observes that out of the projected total Administrative & General Expenses for the FY 2023-24 (Rs. 586.34 lakhs), an amount of Rs. 293.05 lakhs have been earmarked as ‘Lease Rent’, which is approx. 50% of the total Administrative & General Expenses and similar trend continues for rest of the tariff years during the control period. Accordingly, a clarification was sought from the ISP regarding the aspect of proposed lease rent during FY 2023-24. In response, the ISP vide email dated 19.08.2023 has clarified that this lease rent is towards paved/unpaved space taken on lease from the Airport Operator for parking of ground handling equipment and the ISP (vide email dated 29.08.2023) further clarified that they require large space to park additional equipment proposed to be procured in FY 2023-24, resulting into higher lease/ land rent during the FY 2023-24, and is the major factor for the projected increase in Admin. & General Expenses during FY 2023- 24. In addition, it is observed that transportation expenses are another major head of expenses under the Admin. & General Expenses, these expenses as per the ISP are incurred in connection with transportation of equipment sent for annual maintenance/repairs and movement of goods, consumables like uniforms, stationery, etc. The Authority, taking note of the clarifications submitted by the ISP and taking into account the projected increase in aircraft traffic and the impact of general inflation, considers the Y-o-Y increase projected by ISP in respect of Administrative and General Expenses for the First Control Period as reasonable. 5.6 The Authority also notes that as per the projected profitability statement for the First Control Period (Table no. 6) that M/s ITAPL likely to have positive EBITDA during last three year of the First Control Period. Further, the projected EBIT of the ISP in the last tariff year (FY 2026-27) is positive and it is covering depreciation. M/s ITAPL, in context of the projected negative profitability during the Control Period, vide email dated 19.08.2023 stated as under: “It may please be noted that the contract is Awarded by AAI for a period of 10 years and is MAG reduction formula. In view of the same we have to pay higher MAG during the initial year and thereby in 3 years it will come in line with actual operation and company will start earning profit thereafter and the same is evident from the MYTP proposal. Furthermore, it may also be noted that the company has invested its own fund through its parent company and majority of the interest is being paid to the parent company. Hence payment of interest should not be considered as loss.” 5.7 The Authority, in view of the above analysis and considering the additional details/clarifications submitted by the ISP, proposes to consider the projected OPEX for the Control Period as submitted by the ISP. Consultation Paper No. 12/2023-24 Page 19 of 30Authority’s Proposals regarding Operation and Maintenance Expenses for the First Control Period: 5.8 Based on the available material and its analysis, the Authority proposes to consider the OPEX for the First Control Period as per Table 6. Consultation Paper No. 12/2023-24 Page 20 of 30CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s ITAPL submissions on Annual Tariff Proposal for the First Control Period as part of MYTP 6.1 M/s ITAPL has submitted a Tariff proposal for Ground Handling Services in respect of Scheduled Flights at Amritsar International Airport, for the First Control Period (FY 2022-23 to FY 2026-27), as given in Table below: Table 8: Proposed Tariff Rates for Scheduled Flights submitted by M/s ITAPL for the First Control Period (Rates in ₹) (A) Passenger Flights FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Domestic Passenger Flight Code B 6531 9796 16327 6857 10286 17143 7200 10800 18000 7560 11340 18900 Code C 8708 13062 21770 9143 13715 22858 9600 14400 24000 10080 15120 25200 Code D 10885 16327 27212 11429 17143 28572 12000 18000 30000 12600 18900 31500 Code E 26123 39185 65309 27429 41144 68573 28800 43200 72000 30240 45360 75600 Code F 52247 78370 130617 54858 82287 137146 57600 86400 144000 60480 90720 151200 International Passenger Flight Code B 21225 49526 70751 22286 52001 74287 23400 54600 78000 24570 57330 81900 Code C 31566 73654 105220 33144 77335 110478 34800 81200 116000 36540 85260 121800 Code D 38097 88892 126989 40001 93335 133336 42000 98000 140000 44100 102900 147000 Code E 48982 114290 163272 51430 120002 171432 54000 126000 180000 56700 132300 189000 Code F 55512 129529 185041 58287 136003 194290 61200 142800 204000 64260 149940 214200 (B) Cargo Flights Domestic Cargo Flight FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Ramp Services Ramp Services Ramp Services Ramp Services Code B 39911 41906 44000 46200 Code C 54424 57144 60000 63000 Code D 145131 152384 160000 168000 Code E 190484 200004 210000 220500 Code F 226766 238100 250000 262500 International Cargo Flight Code B 65309 68573 72000 75600 Code C 159644 167622 176000 184800 Code D 181413 190480 200000 210000 Code E 199554 209528 220000 231000 Code F 232209 243814 256000 268800 Consultation Paper No. 12/2023-24 Page 21 of 306.2 M/s ITAPL has proposed the following % increase in the Tariff for Scheduled Flights at Amritsar International Airport as stated in the table below: Table 9: YoY Percentage (%) increase in the Tariff rates for the different categories of Scheduled Flights in respect of the First Control Period (A) Passenger Flights FY 2024-25 FY 2025-26 FY 2026-27 Full Full Full Pax Ramp Pax Ramp Pax Ramp Services Services Services Domestic Passenger Flight Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% International Passenger Flight Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% (B) Cargo Flights Domestic Cargo Flight FY 2024-25 FY 2025-26 FY 2026-27 Ramp Services Ramp Services Ramp Services Code B 5% 5% 5% Code C 5% 5% 5% Code D 5% 5% 5% Code E 5% 5% 5% Code F 5% 5% 5% International Cargo Flight Code B 5% 5% 5% Code C 5% 5% 5% Code D 5% 5% 5% Code E 5% 5% 5% Code F 5% 5% 5% 6.3 M/s ITAPL has also submitted a separate Tariff Rate Card for Non-Scheduled and General Aviation Operation(s) as per the table given below: - Consultation Paper No. 12/2023-24 Page 22 of 30Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ITAPL for the First Control Period FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 A/C Category Domestic International Domestic International Domestic International Domestic International MTOW Helicopter 8123 13321 8550 14022 9000 14760 9450 15498 ≤6000 12184 27382 12825 28823 13500 30340 14175 31857 >6001 - 12000 16696 37003 17575 38950 18500 41000 19425 43050 >12001 - 25000 27075 42553 28500 44793 30000 47150 31500 49508 >25001 - 40000 40613 64754 42750 68163 45000 71750 47250 75338 >40001 - 70000 54150 81406 57000 85690 60000 90200 63000 94710 >70001 - 100000 88445 109157 93100 114903 98000 120950 102900 126998 > 100001 - 150000 112813 162811 118750 171380 125000 180400 131250 189420 > 150001 & above 135375 185013 142500 194750 150000 205000 157500 215250 Authority’s Examination and Analysis: 6.4 The Authority notes that in the case of Scheduled Flights (Domestic and International), the ISP has proposed 5% YoY increase in Tariff Rates from FY 2024-25 onward (Table 9). 6.5 The Authority also notes that M/s ITAPL proposed a separate Tariff Rate card for Non-Scheduled Flights and has proposed an increase of 5% YoY basis from FY 2024-25 onward (Table 10). 6.6 The Authority, taking note of projected Aircraft Traffic and projected increase in Operating Expenditure proposed by the ISP, due to factors like increase in number of manpower to cater to increasing aircraft volumes, annual increase in salaries and wages, general inflation etc., is of the view that the ISP requires adequate revenues to cover up the increase in the Operating Costs. Considering the above, the 5% YoY increase in Tariff Rates proposed by the ISP from FY 2024-25 onward appears reasonable. It is pertinent to mention that even with the proposed tariff increase, the ISP as per its projected profitability statement is likely to suffer losses throughout the Control Period. 6.7 The Authority is of the view that the Tariff for Domestic ‘Non-Scheduled and General Aviation Operations’ should not be more than the Tariff of relevant Domestic Scheduled Flights for a similar class of Aircraft(s). However, the Authority proposes to consider the separate Tariff in case of International ‘Non-Scheduled & General Aviation Operations’ as per Annexure-II. 6.8 The Authority proposes that in case of payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on 15th of the month will be applicable for the second fortnight. 6.9 Further, M/s ITAPL should ensure compliance towards Standardization of Ground Handling Equipment at Amritsar International Airport in accordance with the directives issued by the Ministry of Civil Aviation, vide its letter no. AV-24011/10/2021-AAI-MOCA dated 27.10.2022. Consultation Paper No. 12/2023-24 Page 23 of 30Authority’s Proposals regarding Tariff for Ground Handling Services for the First Control Period: The Authority proposes the following Tariff structure and Annual Tariff Proposal for the First Control Period: 6.10 To consider the Tariff Rates for Ground Handling Services provided by M/s ITAPL at Amritsar International Airport in respect of Scheduled Flights, International ‘Non-Scheduled & General Aviation Operations’ and Item-wise Tariff Rate Card for Domestic and International Flights, for the First Control Period, as per Annexures (I, II & III). 6.11 The Tariff for Domestic ‘Non-Scheduled and General Aviation Operations’ shall not exceed the approved Tariff(s) for relevant Domestic Scheduled Flights for similar class of Aircraft(s). 6.12 In case of payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate prevailing as on the 15th of the month will be applicable for the second fortnight. 6.13 The Tariff Rates indicated in Annexures (I, II & III) shall be maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates. 6.14 M/s ITAPL shall ensure compliance towards Standardization of Ground Handling Equipment at Amritsar International Airport in accordance with the directives issued by Ministry of Civil Aviation vide its letter no. AV-240 11/10/2021-AAI-MOCA dated 27.10.2022. Consultation Paper No. 12/2023-24 Page 24 of 30CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS The below-mentioned summary provides the Authority's proposals relating to relevant chapters regarding the Tariff determination of M/s ITAPL providing Ground Handling Services at Amritsar International Airport, for Stakeholders’ Consultation purpose: Chapter Para Summary of Authority’s Proposals Page No. The Authority proposes to consider the Tariff determination exercise for M/s ITAPL, in respect of Ground Handling Services being provided by the ISP at Chapter 2.9 Sri Guru Ram Das Jee International Airport, Amritsar under the ‘Light 9 No.2 Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. The Authority proposes to consider the Aircraft Traffic (Flights to be handled Chapter 3.9 by the ISP) for the last four tariff years (i.e., FY 2023-24 and 2026-27) of the 12 No. 3 First Control Period as per Table 3. Chapter 4.9 The Authority proposes to consider the projected CAPEX for the First 15 No. 4 Control Period as per Table 4. Chapter 5.8 The Authority proposes to consider the OPEX for the First Control Period as 20 No. 5 per Table 6. The Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s ITAPL at Amritsar International Airport in respect 6.10 of Scheduled Flights, International ‘Non-Scheduled & General Aviation Operations’ and Item-wise Tariff Rate Card for Domestic and International Flights, for the First Control Period, as per the Annexures (I, II & III). The Authority proposes that the Tariff for Domestic ‘Non-Scheduled and 6.11 General Aviation Operations’, shall not exceed the approved Tariff(s) for relevant Domestic Scheduled Flights for similar class of Aircraft(s). The Authority proposes that In case of payment in foreign currency, the RBI Chapter 6.12 conversion rate as on the last day of the previous month will be applicable for 24 No. 6 the first fortnight and the rate prevailing as on the 15th of the month will be applicable for the second fortnight. The Authority proposes that the Tariff Rates indicated in Annexures (I, II & 6.13 III) shall be maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates. The Authority proposes that M/s ITAPL shall ensure compliance towards 6.14 Standardization of Ground Handling Equipment at Amritsar International Airport in accordance with the directives issued by Ministry of Civil Aviation vide its letter no. AV-240 11/10/2021-AAI-MOCA dated 27.10.2022. Consultation Paper No. 12/2023-24 Page 25 of 30CHAPTER 8: STAKEHOLDERS’ CONSULTATION 8.1 In accordance with the provisions of Section 13(4) of the AERA Act, the Authority’s proposals contained in Chapter 7 above are hereby put forth for Stakeholders’ consultation. To assist the Stakeholders in making their submissions in a meaningful and constructive manner, necessary annexures are enclosed to the Consultation Paper (Annexures-I, II & III). 8.2 For removal of doubts, it is clarified that the contents of this Consultation Paper may not be construed as any Order or Direction of this Authority. The Authority shall pass an Order, in the matter, only after considering the submissions of the Stakeholders in response hereto and by making such decision fully documented and explained in the tariff order in terms of the provisions of the Act. 8.3 The Authority welcomes written evidence-based feedback, comments and suggestions from Stakeholders on the proposals made in Chapter 7 above, latest by 27/09/2023. Secretary, Airports Economic Regulatory Authority of India, AERA Building, Administrative Complex, Safdarjung Airport, New Delhi -110003 Tel: 011-24695044-47, Fax: 011-24695048 (Chairperson) Consultation Paper No. 12/2023-24 Page 26 of 30ANNEXURE I TARIFF RATE CARD FOR M/s INDOTHAI AMRITSAR PRIVATE LIMITED IN RESPECT OF DOMESTIC* & INTERNATIONAL SCHEDULED FLIGHTS AT AMRITSAR AIRPORT FOR THE FIRST CONTROL PERIOD (FY 2022-23 to FY 2026-27) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) (A) Passenger Flights FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Services Services Services Services Domestic Passenger Flight Code B 6531 9796 16327 6857 10286 17143 7200 10800 18000 7560 11340 18900 Code C 8708 13062 21770 9143 13715 22858 9600 14400 24000 10080 15120 25200 Code D 10885 16327 27212 11429 17143 28572 12000 18000 30000 12600 18900 31500 Code E 26123 39185 65309 27429 41144 68573 28800 43200 72000 30240 45360 75600 Code F 52247 78370 130617 54858 82287 137146 57600 86400 144000 60480 90720 151200 International Passenger Flight Code B 21225 49526 70751 22286 52001 74287 23400 54600 78000 24570 57330 81900 Code C 31566 73654 105220 33144 77335 110478 34800 81200 116000 36540 85260 121800 Code D 38097 88892 126989 40001 93335 133336 42000 98000 140000 44100 102900 147000 Code E 48982 114290 163272 51430 120002 171432 54000 126000 180000 56700 132300 189000 Code F 55512 129529 185041 58287 136003 194290 61200 142800 204000 64260 149940 214200 (B) Cargo Flights Domestic Cargo Flight FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 Ramp Services Ramp Services Ramp Services Ramp Services Code B 39911 41906 44000 46200 Code C 54424 57144 60000 63000 Code D 145131 152384 160000 168000 Code E 190484 200004 210000 220500 Code F 226766 238100 250000 262500 International Cargo Flight Code B 65309 68573 72000 75600 Code C 159644 167622 176000 184800 Code D 181413 190480 200000 210000 Code E 199554 209528 220000 231000 Code F 232209 243814 256000 268800 *Tariff for Domestic Scheduled Flights is also applicable to Domestic ‘Non-Scheduled & General Aviation Flights’. Notes:  Above Tariff Rates are excluding all applicable taxes.  Tariff determined shall be the maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the First fortnight and the rate as on 15th of the month will be applicable for the second fortnight. Consultation Paper No. 12/2023-24 Page 27 of 30ANNEXURE II TARIFF RATE CARD FOR M/s INDOTHAI AMRITSAR PRIVATE LIMITED FOR INTERNATIONAL ‘NON-SCHEDULED & GENERAL AVIATION OPERATIONS’ AT AMRITSAR AIRPORT, FOR THE FIRST CONTROL PERIOD (FY 2022-23 to FY 2026-27) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) Financial Year FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 A/C Category MTOW Helicopter 13321 14022 14760 15498 ≤ 6000 27382 28823 30340 31857 >6001 - 12000 37003 38950 41000 43050 >12001 - 25000 42553 44793 47150 49508 >25001 - 40000 64754 68163 71750 75338 >40001 - 70000 81406 85690 90200 94710 >70001 - 100000 109157 114903 120950 126998 > 100001 - 150000 162811 171380 180400 189420 > 150001 & above 185013 194750 205000 215250 Notes:  Above Tariff Rates are excluding all applicable taxes.  Tariff determined shall be the maximum Tariff to be charged. No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on 15th of the month will be applicable for the second fortnight. Consultation Paper No. 12/2023-24 Page 28 of 30ANNEXURE –III RATE CARD FOR ITEM-WISE CHARGES IN RESPECT OF GROUND HANDLING SERVICES FOR M/s INDOTHAI AMRITSAR PRIVATE LIMITED AT AMRITSAR AIRPORT PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Maximum Item-wise Charges in respect of Domestic* & International Flights for the First Control Period (FY 2022-23 to FY 2026-27) (Rates in ₹) For the FY 2023-24 For the FY 2024-25 For the FY 2025-26 For the FY 2026-27 Sl. No. SERVICES UNIT Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. 1 Air Conditioning Unit (NB) Per Hour 11,100 15,000 11,655 15,750 12,238 16,538 12,850 17,364 2 Air Conditioning Unit (WB) Per Hour 18,750 25,000 19,688 26,250 20,672 27,563 21,705 28,941 3 Air Starter Unit (NB) Per Start 7,500 15,000 7,875 15,750 8,269 16,538 8,682 17,364 4 Air Starter Unit (WB) Per Start 18,750 25,000 19,688 26,250 20,672 27,563 21,705 28,941 Aircraft Disinfection-Freighter Per 5 3,000 16,000 3,150 16,800 3,308 17,640 3,473 18,522 Aircrafts Service Aircraft Disinfection- Pax Per 6 4,000 8,000 4,200 8,400 4,410 8,820 4,631 9,261 Aircrafts Code C Service Aircraft Disinfection- Pax Per 7 25,000 32,000 26,250 33,600 27,563 35,280 28,941 37,044 Aircrafts Code D/E Service Aircraft Disinfection- Pax Per 8 - 40,000 - 42,000 - 44,100 - 46,305 Aircrafts Code F Service Per 9 Aircraft Marshalling 1,875 2,480 1,969 2,604 2,067 2,734 2,171 2,871 Service Per flight 10 Ambulift 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 leg 11 Apron Transport(Passenger) Per Trip 950 1,600 998 1,680 1,047 1,764 1,100 1,852 Arrange non-scheduled Crew 12 Hotel Accommodation Per flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. (HOTAC) 13 ATC payment services Per flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Per 14 Baggage ID 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Service 15 Baggage /Cargo cart Per Hour 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Per staff 16 Blue collar staff 400 800 420 840 441 882 463 926 per hour 17 Crew Transport Per Trip 950 1600 998 1,680 1,047 1,764 1,100 1,852 Deportee/Inadmissible(INAD) Per 18 - 1200 - 1,260 - 1,323 - 1,389 handling passenger Excess Baggage Fee(% of As per 19 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. collection) collection Per 20 Exterior Cleaning - NB 52,500 - 55,125 - 57,881 - 60,775 - Service Per 21 Exterior Cleaning - WB 1,50,000 - 1,57,500 - 1,65,375 - 1,73,644 - Service 22 Ground Power unit 90KVA Per Hour 4,700 10,000 4,935 10,500 5,182 11,025 5,441 11,576 23 Ground Power unit 180KVA Per Hour 9,400 16,800 9,870 17,640 10,364 18,522 10,882 19,448 Per 24 Interior Deep Cleaning - NB 5,000 8,000 5,250 8,400 5,513 8,820 5,788 9,261 Service Per 25 Interior Deep Cleaning - WB 15,000 24,000 15,750 25,200 16,538 26,460 17,364 27,783 Service 26 Passenger Step (mobile-NB) Per Hour 1,375 4,000 1,444 4,200 1,516 4,410 1,592 4,631 27 Passenger Step (mobile-WB) Per Hour 2,750 8,000 2,888 8,400 3,032 8,820 3,183 9,261 Pushback for narrow body 28 Per Push 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 aircraft 29 Pushback for wide body aircraft Per Push 10,000 20,000 10,500 21,000 11,025 22,050 11,576 23,153 Per 30 Toiler truck 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 Service 31 Towing of narrow body aircraft Per Tow 5,000 10,000 5,250 10,500 5,513 11,025 5,788 11,576 32 Towing of wide body aircraft Per Tow 10,000 20,000 10,500 21,000 11,025 22,050 11,576 23,153 Consultation Paper No. 12/2023-24 Page 29 of 30For the FY 2023-24 For the FY 2024-25 For the FY 2025-26 For the FY 2026-27 Sl. No. SERVICES UNIT Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Unaccompanied Minor (UM) 33 per UM 950 1,200.00 998 1,260 1,047 1,323 1,100 1,389 Handling 34 Vacuum Cleaner Per Hour 3,750 4,000.00 3,938 4,200 4,134 4,410 4,341 4,631 35 VIP Vehicle (Innova range) Per Trip 10,000 20,000 10,500 21,000 11,025 22,050 11,576 23,153 VIP Vehicle (Luxury- 36 Per Trip 25,000 40,000 26,250 42,000 27,563 44,100 28,941 46,305 Mercedes/BMW/AUDI range) Per 37 Water truck 1,375 2,400 1,444 2,520 1,516 2,646 1,592 2,778 Service Per 38 Wheel chair 400 2,400 420 2,520 441 2,646 463 2,778 Service Per staff 39 White Collar Staff 600 1,200 630 1,260 662 1,323 695 1,389 per hour * Tariff for Domestic Scheduled Flights is also applicable to Domestic ‘Non-Scheduled and General Aviation Flights’. Dom. = Domestic; Intl. = International Notes:  Above Tariff Rates are excluding of all applicable taxes, if any.  Tariff determined shall be the maximum Tariff to be charged No other charge is to be levied over and above the approved Tariff Rates.  For payment in foreign currency, the RBI conversion rate as on the last day of the previous month will be applicable for the first fortnight and the rate as on 15th of the month will be applicable for the second fortnight. Consultation Paper No. 12/2023-24 Page 30 of 30