Home India Airports Economic Regulatory Authority of India Consultation Paper No. 20/2023-24 In the matter of Determina...
Date: 2023-12-01 Category: Consultation Paper State: Union Government Country: India

Consultation Paper No. 20/2023-24 In the matter of Determination of Tariff in respect of Ground Handling Services for M/s Indo Thai Bhubaneswar Private Limited (ITBPL) at Biju Patnaik International Airport, Bhubaneswar for the First Control Period (FY 2023-24 to FY 2027-28).

Issued by Airports Economic Regulatory Authority of India · Not Applicable

Research with AI Agent Chat with Document Generate Summary Translate Helpful Share Add to Project Create Task

Executive Summary & Key Takeaways

**Executive Summary** This is a consultation paper issued by the Airports Economic Regulatory Authority of India (AERA) regarding the determination of tariffs for ground handling services provided by M/s IndoThai Bhubaneswar Private Limited (ITBPL) at Biju Patnaik International Airport, Bhubaneswar, for the first control period (FY 2023-24 to FY 2027-28). Stakeholders are invited to submit written comments by December 22, 2023, with counter comments due by December 29, 2023. **Key Points / Main Content** * **Tariff Determination Methodology:** * The tariff determination exercise is being conducted under the "Light Touch Approach" as the service is deemed 'Not Material.' * The Authority examines various regulatory building blocks, underlying assumptions, CAPEX, OPEX and projected revenues. * Annual Tariff Proposal (ATP) along with the Multi Year Tariff Proposal (MYTP) has been submitted by M/s ITBPL. * ISP conducted stakeholders' consultation meetings on 25th August, 2023. * **Aircraft Traffic (Flights to be Handled):** * Authority proposes to consider the projected Aircraft Traffic (flights to be handled by ISP) for First Control Period (FY 2023-24 to FY 2027-28) * **Capital Expenditure (CAPEX):** * M/s ITBPL has projected a total CAPEX of ₹ 1083.24 Lakhs for the First Control Period. * Authority proposes to consider the CAPEX projected for the First Control Period. * **Revenue and Operating Expenditure (OPEX):** * Authority proposes to consider the OPEX projected for the First Control Period. * The Authority, taking note of the clarifications submitted by the ISP and the impact of annual 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. * **Annual Tariff Proposal:** * Authority proposes to consider the Tariff Rates for Ground Handling Services provided by M/s ITBPL at Biju Patnaik International Airport, Bhubaneswar in respect of scheduled flights, international ‘Non-Scheduled & General Aviation Flights’ and item-wise tariff rate card for domestic and international flights, for the first control period. *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 prevailing as on the 15th of the month will be applicable for the second fortnight. * The Tariff for Domestic ‘Non-Scheduled and General Aviation Flights' shall not exceed the approved Tariff(s) for relevant Domestic Scheduled Flights for similar class of Aircraft(s). * The Tariff Rates indicated in Annexures (I, II & III) shall be maximum Tariff to be charged. No other charge(s) is to be levied over and above the approved Tariff Rates. * M/s ITBPL shall ensure compliance towards Standardization of Ground Handling Equipment at Biju Patnaik International Airport, Bhubaneswar 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. * Authority proposes that M/s ITBPL shall ensure compliance towards standardization of Ground Handling Equipment at Biju Patnaik International Airport, Bhubaneswar in accordance with the directives issued by the Ministry of Civil Aviation. * **Stakeholders' Consultation:** * Authority welcomes written evidence-based feedback, comments and suggestions from Stakeholders on the proposals made in Chapter 7 above, latest by 22.12.2023. **Impact Analysis** * **M/s IndoThai Bhubaneswar Private Limited (ITBPL)** *Impact:* The tariff determination will directly impact ITBPL's revenue and profitability for ground handling services at Biju Patnaik International Airport. They must comply with standardization directives. *Action Required:* ITBPL must ensure compliance towards Standardization of Ground Handling Equipment at Biju Patnaik International Airport. * **Airports Authority of India (AAI)** *Impact:* AAI is impacted due to the revenue share from ITBPL's operations *Action Required:* No specific actions are required from AAI based on the document. * **Airlines Operating at Biju Patnaik International Airport** *Impact:* The tariff rates for ground handling services will influence their operating costs. *Action Required:* Airlines should review the proposed tariff rates and provide feedback/comments to AERA. * **Passengers** *Impact:* The final determination of tariffs will have an indirect effect on passengers. *Action Required:* Passengers should give their concerns to stakeholders.

Key Entities Referenced

Airports Economic Regulatory Authority of India (AERA): The primary regulatory body issuing this consultation paper regarding tariff determination. M/s IndoThai Bhubaneswar Private Limited (ITBPL): The ground handling service provider whose tariff rates are being determined in the consultation paper. Biju Patnaik International Airport, Bhubaneswar: The location where ITBPL provides ground handling services, central to the applicability of the tariff. AERA Act, 2008: The act under which the authority is acting, specifically section 13(4) is mentioned. CGF Guidelines: 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
Official Source Record View Original Source →
See Full Document Text
फा. सं. ऐरा/20010/एमवाईटीपी/इडं ोथाई/जीएच/भुवनेश्वर /सीपी-III/2021-26 F. No. AERA/20010/ MYTP/IndoThai/GH/Bhubaneswar/CP-III/2021-26 परामर्श पत्र संख्या 20/2023-24 Consultation Paper No. 20/2023-24 भारतीय विमानपत् तन आवथशक विवनयामक प्राविकरण Airports Economic Regulatory Authority of India मैससश इडं ोथाई भुिनेश् िर प्राइिेट विवमटेड (आई.टी.बी.पी.एि.) की बीज ू पटनायक अंतराशष्ट्रीय हिाईअड्डा, भुिनेश् िर में ग्राउंड हैंडविंग सेिाओ ंके सबंि में प्रथम वनयंत्रण अिवि (वित् त िर्श 2023-24 से वित् त िर्श 2027-28) के विए टैररफ वनिाशररत करने के मामिे में IN THE MATTER OF DETERMINATION OF TARIFF IN RESPECT OF GROUND HANDLING SERVICES FOR M/s INDOTHAI BHUBANESWAR PRIVATE LIMITED (ITBPL) AT BIJU PATNAIK INTERNATIONAL AIRPORT, BHUBANESWAR FOR THE FIRST CONTROL PERIOD (FY 2023-24 TO FY 2027-28) जारी करने की तारीख : 01.12.2023 Date of Issue: 01.12.2023 ऐरा बिब्डंग/AERA Building प्रशासबनक पररसर/Administrative Complex सफदरजंग हवाईअड्डा/Safdarjung Airport नई बद् ली/New Delhi – 110003 Consultation Paper No. 20/2023-24 Page 1 of 28STAKEHOLDERS’ 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 Bhubaneswar Private Limited (ITBPL) for providing Ground Handling Services at Biju Patnaik International Airport, Bhubaneswar. 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 20/2023-24 dated 01.12.2023 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; prabhjot.marwah@nic.in Copy to: director-ps@aera.gov.in; secretary@aera.gov.in Last date for submission of Stakeholders’ Comments 22.12.2023 Last date for submission of Counter Comments 29.12.2023 Comments and Counter 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. 20/2023-24 Page 2 of 28TABLE OF CONTENTS Chapter/ Particulars Page No. Annexure Chapter-1 Introduction 6 Chapter-2 Principles for the determination of tariff for the aeronautical services 8 Chapter-3 Aircraft traffic (flights to be handled) 10 Chapter-4 Capital expenditure 12 Chapter-5 Revenue and operating expenditure 15 Chapter-6 Annual tariff proposal 19 Chapter-7 Summary of authority’s proposals 23 Chapter-8 Stakeholders' consultation 24 Annexure-I Proposed tariff rate card for scheduled flights 25 Proposed tariff rate card for international ‘Non-Scheduled and General Annexure-II 26 aviation flights’ Proposed tariff rate card for item-wise charges for Domestic & International Annexure-III 27 flights Consultation Paper No. 20/2023-24 Page 3 of 28LIST OF TABLES Table Particulars Page No. No. 1 Shareholding Structure of M/s ITBPL. 6 Actual Aircraft Traffic handled at Biju Patnaik International Airport, 2 10 Bhubaneshwar during FY 2018-19 to FY 2022-23. Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s 3 10 ITBPL for the First Control Period. 4 Projected Capital Expenditure submitted by M/s ITBPL for the First Control Period. 12 Breakup of Capital Expenditure as submitted by M/s ITBPL for the First Control 5 12 Period. Revenue, Operating Expenditure and Profitability projected by M/s ITBPL for the 6 15 First Control Period. Year on Year Percentage (%) increase in the Revenue and Operation & Maintenance 7 16 Expenditure during the First Control Period. Proposed Tariff Rates for the Ground Handling Services in respect of the Scheduled 8 19 Flights submitted by M/s ITBPL for the First Control Period. Y-o-Y Percentage (%) increase in the Tariff Rates for the different categories of 9 20 Scheduled Flights in respect of the First Control Period Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ITBPL for the 10 21 First Control Period. Consultation Paper No. 20/2023-24 Page 4 of 28List of Abbreviations AERA / Authority Airports Economic Regulatory Authority of India ATM Air Traffic Movement ATP Annual Tariff Proposal BCAS Bureau of Civil Aviation Security CAPEX Capital Expenditure COD Commercial Operations Date CGF Cargo Facility, Ground Handling & Supply of Fuel to the Aircraft GHA Ground Handling Agencies EBIDTA Earnings Before Interest, Depreciation, Tax and Amortization GHS Ground Handling Services ITBPL IndoThai Bhubaneswar Private Limited INR/₹ Indian Rupees ISP Independent Service Provider LOIA Letter of Intent to Award MoM Minutes of Meeting MTOW Maximum Take Off Weight MYTP Multi-Year Tariff Proposal OPEX Operating Expenditure O&M Operation and Maintenance PAT Profit After Tax P&L Profit & Loss SPV Special Purpose Vehicle Y-o-Y Year on Year Consultation Paper No. 20/2023-24 Page 5 of 28CHAPTER 1: INTRODUCTION 1.1 M/s IndoThai Bhubaneswar Pvt. Ltd. (ITBPL) vide letter dated 24.09.2021 informed the Authority that M/s IndoThai Airport Management Services Pvt. Ltd. has been selected, through RFP selection process, by Airports Authority of India (AAI) for providing Ground Handling Services at Biju Patnaik International Airport, Bhubaneswar, for a period of 10 years from the Commercial Operations Date (“COD”). In accordance to clause 5 of Letter of Intent to award (LOIA) dated 19.02.2021, a Special Purpose Vehicle (SPV) “ITBPL” was incorporated on 24.03.2021 for providing Ground Handling Services (GHS) at Biju Patnaik International Airport, Bhubaneswar. 1.2 The shareholding structure of the M/s ITBPL (SPV) is tabulated below: Table-1: Shareholding Structure of M/s ITBPL: 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 ITBPL, vide letter dated 18.05.2022, submitted copies of Certificate of Incorporation of SPV and Security Clearance given by Bureau of Civil Aviation Security (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 Bhubaneswar Airport namely, AI Airport Services Limited (earlier known as Air India Airport Services Limited), on ad- hoc basis. Thereafter, M/s ITBPL submitted a copy of Concession Agreement dated 19.05.2022, executed between AAI & M/s ITBPL. 1.4 The Authority noted that SPV “ITBPL” has obtained the security clearance from BCAS vide its letter dated 13.05.2022, valid for a period of 5 years, from the date of issue of security clearance and started its commercial operation at Bhubaneswar Airport on 16.07.2022. 1.5 Considering the request of M/s ITBPL, the Authority, vide Order No. 10/2022-23 dated 30.06.2022 allowed M/s ITBPL to levy the then prevailing tariff for Ground Handling Services as applicable to AI Airport Services Ltd. at Biju Patnaik International Airport, Bhubaneswar, on ad-hoc basis, w.e.f. 01.07.2022 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 period up to 30.09.2023. Thereafter, the Authority, vide Order No. 20/2023-24 dated 27.09.2023 extended the ad-hoc tariff for a further period of six months i.e., up to 31.03.2024, or, till the determination of regular tariff for the ISP, whichever is earlier. 1.6 The ISP, vide email dated 04.09.2023 submitted Multi Year Tariff Proposal (MYTP) in respect of the First Control Period (FY 2023-24 to FY 2027-28) for the determination of Consultation Paper No. 20/2023-24 Page 6 of 28Tariff, in respect of Ground Handling Services being provided by the service provider at Biju Patnaik International Airport, Bhubaneswar. The Authority, during the initial review of the MYTP, observed some shortcomings/ information gaps; accordingly, various clarifications / additional details were sought from the ISP. Based on the AERA observations, ISP submitted the revised MYTP for the First Control Period vide its email dated 24th October, 2023. 1.7 The Authority, after having examined the MYTP submission of the M/s ITBPL 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. 20/2023-24 Page 7 of 28CHAPTER 2: PRINCIPLES FOR THE DETERMINATION OF TARIFF FOR THE 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 Bhubaneswar Airport = 623/420772 = 0.15% The percentage share of Biju Patnaik International Airport, Bhubaneswar for FY 2019-20 (Pre- Covid Year) in respect of International Aircraft Movements is 0.15%, which is less than 5% Materiality Index (MI ) for the subject regulated service. Hence, the Regulated Service is deemed G ‘Not Material’ for the First Control Period at Biju Patnaik International Airport, Bhubaneswar. As per the information furnished by M/s ITBPL in Form F1 (b) on competition Assessment, M/s AI Airport Services Limited (AIASL) is also rendering similar services at Biju Patnaik International Airport, Bhubaneswar. 2.3 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. 2.4 As per the information furnished by M/s ITBPL in form F1(b) relating to the competition assessment, M/s AI Airport Services Limited (AIASL) is also rendering similar services at the Bhubaneswar airport. 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 service provider. Accordingly, in accordance with CGF Guidelines (Clause 11.3), wherever Consultation Paper No. 20/2023-24 Page 8 of 28required, necessary clarifications/ additional details etc., related to pertinent aspects of the proposal were 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) Evidence of Consultation with Stakeholders; b) 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 ITBPL has submitted the Annual Tariff Proposal (ATP) along with its MYTP. The ISP conducted stakeholders’ consultation meetings on 25th August, 2023 and has submitted Minutes of Meeting (MoM) to the Authority. As per the MoM, none of the stakeholders raised any issue relating to the Tariff proposed by the ISP for the First Control Period. Authority’s Proposal regarding Methodology of Tariff Determination for M/s ITBPL: 2.8 Based on the material before it and its analysis, the Authority proposes to consider the Tariff determination exercise for M/s ITBPL, in respect of Ground Handling Services being provided by the ISP at Biju Patnaik International Airport, Bhubaneswar, under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. Consultation Paper No. 20/2023-24 Page 9 of 28CHAPTER 3: AIRCRAFT TRAFFIC (FLIGHTS TO BE HANDLED) M/s ITBPL submission on Projected Aircraft Traffic for the First Control Period 3.1 Actual Aircraft Traffic (No. of Landings) handled at Biju Patnaik International Airport, Bhubaneswar from FY 2018-19 to FY 2022-23 is given below: Table 2: Actual Aircraft Traffic handled at Biju Patnaik International Airport, Bhubaneswar during FY 2018-19 to FY 2022-23 Total number of Landing at Biju Patnaik International Airport, Y-o-Y % increase Year Bhubaneswar Domestic International Total Domestic International Total 2018-19 14851 344 15195 -- -- -- 2019-20 13654 312 13966 -8% -9% -8% 2020-21 7087 46 7133 -48% -85% -49% 2021-22 9699 10 9709 37% -78% 36% 2022-23 15357 16 15373 58% 60% 58% 3.2 Projected Aircraft Traffic (flights to be handled by the ISP) for the First Control Period submitted by M/s ITBPL is given below in Table 3. Table 3: Projected Aircraft Traffic (Flights to be handled by the ISP) submitted by M/s ITBPL for the First Control Period Flights to be handled by M/s ITBPL for the First Control Period Total Y-o-Y % increase Year (No. of Domestic International Landings) Domestic International Total 2023-24 5160 25 5185 - - - 2024-25 5420 26 5446 5% 4% 5% 2025-26 5690 28 5718 5% 8% 5% 2026-27 5975 29 6004 5% 4% 5% 2027-28 6275 30 6305 5% 3% 5% TOTAL 28520 138 28658 Consultation Paper No. 20/2023-24 Page 10 of 28Authority’s Examination and Analysis: 3.3 The Authority notes that M/s ITBPL 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. 3.4 As per the statistics available at AAI website, the total Aircraft Traffic (Domestic and International) at Biju Patnaik International Airport, Bhubaneswar in the FY 2022-23 had surpassed the actual Aircraft Traffic handled during the pre-Covid period (FY 2019-20) at this Airport (Reference Table 2 above). 3.5 The Authority also notes that ISP has projected 5185 flights (Domestic and International flights) to be handled during the FY 2023-24, which is approx. 34% of the total number of flights i.e., 15373 (Domestic and International flights) landed at the Bhubaneswar during the FY 2022-23. Accordingly, the ISP is expected to have a market share around 34% during the first tariff year of the Control Period. 3.6 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 Bhubaneswar Airport, the aircraft traffic volumes (flights to be handled) projected by the ISP for the First Control Period (FY 2023-24 to FY 2027-28 seems reasonable. 3.7 Accordingly, the Authority proposes to consider Aircraft Traffic projections (flights to be handled by the ISP) as submitted by the M/s ITBPL for the First Control Period (i.e., FYs 2023-24 to FY 2027- 28) as given in Table 3 above. Authority’s proposal regarding Aircraft Traffic Volumes (Flights to be handled by the ISP) for the First Control Period: 3.8 Based on the material before it and its analysis, the Authority proposes to consider the projected Aircraft Traffic (Flights to be handled by the ISP) for First Control Period (FY 2023-24 to FY 2027- 28) as per Table 3. Consultation Paper No. 20/2023-24 Page 11 of 28CHAPTER 4: CAPITAL EXPENDITURE M/s ITBPL ’s Submission on Capital Expenditure for the First Control Period 4.1 M/s ITBPL has projected a total Capital Expenditure (CAPEX) of ₹ 1083.24 Lakhs for the First Control Period. Projected CAPEX is proposed to be incurred during FY 2023-24 to FY 2027-28. The year-wise & asset-wise Capital Expenditure projected by ISP for the First Control Period is given below: Table 4: Projected Capital Expenditure submitted by M/s ITBPL for the First Control Period (₹ in Lakhs) FY FY FY FY FY Particulars Total 2023-24 2024-25 2025-26 2026-27 2027-28 Ground Handling Equipment 140.10 347.21 153.10 11.30 19.80 671.51 Vehicles - 170.90 5.97 176.87 5.97 359.73 Furniture and Fittings 20.00 5.00 5.00 5.00 1.00 36.00 Office Equipment 10.00 5.00 - - 1.00 16.00 Total 170.10 528.11 164.08 193.17 27.77 1083.24 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 ITBPL for the First Control Period (₹ in Lakhs) FY FY FY FY FY Particulars COST 2023-24 2024-25 2025-26 2026-27 2027-28 Total Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount 1. Ground Handling Equipment: Push Back - Medium 90.00 - 0.00 1 90.00 - 0.00 - 0.00 - - 90.00 Towbar 7.50 - 0.00 2 15.00 - 0.00 - 0.00 - - 15.00 Electric Baggage 70.00 35.00 - 0.00 - 0.00 2 70.00 - 0.00 - - Tractors Baggage Tractor 6.20 - 0.00 2 12.41 1 6.20 - 0.00 - - 18.61 Ground Power Unit - 72.00 36.00 1 36.00 - 0.00 1 36.00 - 0.00 - - 90 KVA Air start unit - 300 113.00 113.00 - 0.00 1 113.00 - 0.00 - 0.00 - - ppm Conveyor belt 40.00 8.00 1 8.00 4 32.00 - 0.00 - 0.00 - - towable Towable Pax Step 72.00 8.00 4 32.00 3 24.00 2 16.00 - 0.00 - - ladder Towable toilet cart 4.00 1 4.00 2 8.00 - 0.00 - 0.00 1 4 16.00 Towable water cart 4.00 - 0.00 2 8.00 - 0.00 - 0.00 1 4 12.00 Vacuum Cleaner 0.50 2 1.00 4 2.00 - 0.00 4 2.00 4 2 7.00 Baggage Trolley - 94.25 0.65 60 39.00 50 32.50 25 16.25 - 0.00 10 7 Covered Ambulift Towable 12.00 1 12.00 - 0.00 - 0.00 - 0.00 - - 12.00 Consultation Paper No. 20/2023-24 Page 12 of 28FY FY FY FY FY Particulars COST 2023-24 2024-25 2025-26 2026-27 2027-28 Total Qty. Amount Qty. Amount Qty. Amount Qty. Amount Qty. Amount Fire Extinguisher 1.35 0.15 2 0.30 2 0.30 1 0.15 2 0.30 2 - TROLLEY TRESTLE/LADDER 2.00 - 0.00 - 0.00 1 2.00 - 0.00 - - 2.00 Wheel Chairs 0.20 14 2.80 25 5.00 - 20 4.00 10 2.00 13.80 FUEL BOWSER 1.50 - 0.00 - 0.00 1 1.50 - 0.00 - - 1.50 Miscellaneous 5.00 5.00 5.00 5.00 1 21.00 Total 140.10 347.21 153.10 11.30 19.80 671.51 2. Vehicles: Bus/coaches 85.45 0.00 2.00 170.90 0.00 0.00 2.00 170.90 0.00 0.00 341.80 car 11.32 0.00 0.00 0.00 0.00 0.00 0.00 0.00 car 5.97 0.00 0.00 1.00 5.97 1.00 5.97 1.00 5.97 17.92 Jeep 7.11 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 0.00 170.90 5.97 176.87 5.97 359.73 3. Furniture & 36.00 20.00 5.00 5.00 5.00 1.00 Fittings: Total 20.00 5.00 5.00 5.00 1.00 36.00 4. Office 16.00 10.00 5.00 0.00 0.00 1.00 Equipment: Total 10.00 5.00 0.00 0.00 1.00 16.00 GRAND TOTAL 170.10 528.11 164.08 193.17 27.77 1083.24 Authority’s Examination of the CAPEX proposed by the ISP: 4.3 The Authority notes that the ISP had already incurred a major portion of the CAPEX, in respect of its Ground Handling Services at Bhubaneswar Airport, during FY 2022-23. Further, out of the total projected CAPEX (₹ 1083.24 lakhs) for the First Control Period, M/s ITBPL has proposed major CAPEX on the Ground Handling Equipment (₹ 671.51 lakhs) and Vehicles (₹359.73 lakhs). 4.4 As regard to CAPEX proposed for the FY 2023-24, the ISP informed that the CAPEX projected for the current FY will be achieved before the financial year end (2023-24). 4.5 The Authority observes that the CAPEX proposed by the service provider at the Bhubaneswar airport mainly pertains to the ground handling equipment, vehicles etc., which are considered essential for smooth 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. 4.6 In view of the above, the Authority proposes to consider the CAPEX projected for the First Control Period as submitted by the ISP (as per Table 4). Consultation Paper No. 20/2023-24 Page 13 of 28Authority’s Proposal regarding CAPEX proposed for the First Control Period 4.7 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. 20/2023-24 Page 14 of 28CHAPTER 5: REVENUE AND OPERATING EXPENDITURE ITBPL’s Submission on the Revenue and 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 ITBPL for its Ground Handling operations at Biju Patnaik International Airport, Bhubaneswar, have been broadly categorized as under: a) Payroll Cost; b) Repair and Maintenance Costs; c) Concession Fee/ Revenue Share payable to Airport Operator; d) Utilities & Outsourcing Expenses; 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 2023-24 to FY 2027-28) by the ISP is as under: Table 6: Revenue, Operating Expenditure and Profitability projected by M/s ITBPL for the First Control Period (₹ in Lakhs) FY FY FY FY FY Particulars TOTAL 2023-24 2024-25 2025-26 2026-27 2027-28 Revenue from Regulated Services (A) 1,060.84 1,162.89 1,275.81 1,398.72 1,533.95 6,432.22 Revenue from other than Regulated Services (B) - - - - - - Total Revenue from the Services (A + B) = (C) 1,060.84 1,162.89 1,275.81 1,398.72 1,533.95 6,432.22 Operating Expenditure (OPEX) Payroll Cost (i) 502.57 540.27 580.79 624.35 671.17 2,919.14 17.40 18.63 19.92 21.48 22.99 100.42 Repair and Maintenance Costs (ii) Concession Fee/ Revenue Share payable to 156.44 128.49 102.80 82.24 73.48 543.45 Airport Operator (iii) Utilities & Outsourcing Expenses(iv) 39.55 41.42 43.39 45.44 47.60 217.41 Administrative & General Expenses (v) 44.02 42.44 44.09 45.81 47.61 223.97 759.98 771.26 790.98 819.32 862.86 4,004.40 Total OPEX (i+ii+iii+iv+v) = (D) Earnings Before Interest, Tax, Depreciation 300.86 391.64 484.83 579.40 671.10 2,427.82 and Amortization (EBITDA) (C-D) = (E) Depreciation and Amortization (F) 120.69 161.43 161.70 164.85 151.14 759.81 Interest & Finance Charges (G) 191.87 229.98 225.61 211.59 140.28 999.33 Profit Before Tax (PBT) (E-F-G) = (H) -11.71 0.22 97.52 202.97 379.68 668.68 Provision for Tax (Calculated after taking in to an account the previous years anticipated loss) (I) - - - - 60.39 60.39 Profit After Tax (PAT) (H-I) = (J) -11.71 0.22 97.52 202.97 319.29 608.29 Consultation Paper No. 20/2023-24 Page 15 of 28Authority’s Examination and Analysis: 5.4 The Authority has 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 FY FY FY FY Particulars 2024-25 2025-26 2026-27 2027-28 Revenue from Regulated Services 10% 10% 10% 10% Payroll Costs 7.5% 7.5% 7.5% 7.5% Repair and Maintenance Costs 7% 7% 8% 7% Concession Fee/Revenue share payable -18% -20% -20% -11% to Airport Operator Utilities & Outsourcing Expenses 5% 5% 5% 5% Administrative & General Expenses -4% 4% 4% 4% 5.5 The Authority’s examination of various components of OPEX, proposed by the ISP, for the First Control Period is as under: a) Payroll Costs: The Authority notes that the ISP has projected Y-o-Y increase of 7.5% in Payroll Costs from FY 2024-25 onward. The Authority observes that projected increase in payroll expenses considered by the ISP is commensurate with the projected increase in aircraft traffic and revenues in respect of the First Control Period. Considering the impact of additional manpower required to meet the projected growth in the aircraft traffic (flights to be handled), periodic increase in minimum wages, annual salary increments and related increase in statutory component like EPF etc., the Y-o-Y increase projected by the ISP in the Payroll Costs for the First Control Period is reasonable. b) Repairs and Maintenance Costs: The Authority notes that ISP has considered Y-o-Y increase of 7% to 8% for all the tariff years of the First Control Period. The Authority considers that in order to provide uninterrupted and good services to users, it is imperative for the service provider to keep the ground handling equipment and allied facilities in good working condition. Considering the above and taking into account 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 appears reasonable. c) Concession Fee /Revenue share payable to Airport Operator: The Authority notes from the concession agreement executed between AAI and M/s ITBPL that the ISP is required to pay ‘Revenue Share’ as per the followings: Consultation Paper No. 20/2023-24 Page 16 of 28• 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 observes from clause 7.1.2 of the above-mentioned agreement that every year the ISP shall pay a "premium, which is the maximum of the “Minimum Annual Guarantee” (MAG) or the ‘Revenue Share.”, calculated as per the clause 7.1.1 of the concession agreement. Considering the clause 7.1.2 of the concession agreement and clarification furnished by the ISP, the Authority proposes to consider the concession fee (premium) payable to the Airport Operator as projected by ISP, for the First Control Period. In the first year, Concessionaire will pay MAG quoted at the time of bid. From the second year onward, MAG for Concessionaire will be 80% of the previous year’s premium. As per the ISP, in respect of the second and last tariff year, the premium (concession fee) has been considered based on the expected Revenue Share (which is expected to be more than 80% of previous year’s MAG). However, for the 3rd & 4th tariff year (FY 2025-26 & 2026-27) of the Control period, the MAG is expected to be higher than the ‘Revenue Share’; hence the ‘premium’ payable to the airport operator has been considered based on the MAG figures. In view of the above, the Authority proposes to consider the concession fee (premium) payable to the airport operator as projected by ISP, for the First Control Period. d) Utilities and Outsourcing Expenses: The Authority observes that M/s ITBPL has proposed a nominal increase of 5% on Y-o-Y basis in Utilities and Outsourcing Costs for the First Control Period. The Utility & Outsourcing costs primarily consist of expenses relating to consumption of electricity, fuel and water for ground handling operations. The increase in these expenses is linked with the increase in the level of flight handling. Considering the projected increase in Aircraft Traffic (Flights to be handled), Y-o-Y increase considered by the ISP in the Utility and Outsourcing Cost @ 5%, for the First Control Period, appears reasonable. e) Administrative & General Expenses: In respect of Administrative and Other Expenses, M/s ITBPL proposed a de-escalation of around 3.58% during FY 2024-25 as compared to the projected figures of FY 2023-24. From FY 2025-26 onward, the ISP has proposed a Y-o-Y increase of around 4% in Admin. & General Expenses. The Administrative & General Expenses mainly include Land/ Space Rent, Transport Expenses, Office Expenses & other miscellaneous expenses etc. The Authority, taking note of the clarifications submitted by the ISP and the impact of annual 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 submitted by the M/s ITBPL (Table no. 6), the ISP is likely to maintain overall profit margin (Total PAT / Total Revenue) of around 9.5% for the First Control Period. Consultation Paper No. 20/2023-24 Page 17 of 285.7 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 (Table 6). Authority’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. 20/2023-24 Page 18 of 28CHAPTER 6: ANNUAL TARIFF PROPOSAL M/s ITBPL submissions on Annual Tariff Proposal for the First Control Period as part of MYTP 6.1 M/s ITBPL has submitted a Tariff proposal for Ground Handling Services in respect of Scheduled Flights at Biju Patnaik International Airport, Bhubaneswar, for the First Control Period (FY 2023-24 to FY 2027-28), as given in Table below: Table 8: Proposed Tariff Rates for the Ground Handling Services in respect of the Scheduled Flights submitted by M/s ITBPL for the First Control Period (A) Passenger Flights (Rates in ₹) FY FY FY FY FY 2023-24 2024-25 2025-26 2026-27 2027-28 Domestic Passenger Flights Aircraft Full Full Full Full Full Type Pax. Ramp Services Pax. Ramp Services Pax. Ramp Services Pax. Ramp Services Pax. Ramp Services CODE B 5198 7798 12996 5472 8208 13680 5760 8640 14400 6048 9072 15120 6350 9526 15876 CODE C 6931 10397 17328 7296 10944 18240 7680 11520 19200 8064 12096 20160 8467 12701 21168 CODE D 8664 12996 21660 9120 13680 22800 9600 14400 24000 10080 15120 25200 10584 15876 26460 CODE E 20794 31190 51984 21888 32832 54720 23040 34560 57600 24192 36288 60480 25402 38102 63504 CODE F 41587 62381 103968 43776 65664 109440 46080 69120 115200 48384 72576 120960 50803 76205 127008 International Passenger Flights CODE B 21101 49236 70337 22212 51827 74039 23381 54555 77936 24550 57283 81833 25777 60147 85925 CODE C 21660 50540 72200 22800 53200 76000 24000 56000 80000 25200 58800 84000 26460 61740 88200 CODE D 26858 62670 89528 28272 65968 94240 29760 69440 99200 31248 72912 104160 32810 76558 109368 CODE E 35522 82886 118408 37392 87248 124640 39360 91840 131200 41328 96432 137760 43394 101254 144648 CODE F 40721 95015 135736 42864 100016 142880 45120 105280 150400 47376 110544 157920 49745 116071 165816 *Tariff for Domestic Scheduled Flights is also applicable to Domestic ‘Non-Scheduled & General Aviation Flights’. (B) Cargo Flights FY FY FY FY FY 2023-24 2024-25 2025-26 2026-27 2027-28 Aircraft Type Ramp Services Ramp Services Ramp Services Ramp Services Ramp Services Domestic Cargo Flights: CODE B 39710 41800 44000 46200 48510 CODE C 54150 57000 60000 63000 66150 CODE D 144400 152000 160000 168000 176400 CODE E 189525 199500 210000 220500 231525 CODE F 225625 237500 250000 262500 275625 International Cargo Flights: CODE B 64980 68400 72000 75600 79380 CODE C 158840 167200 176000 184800 194040 CODE D 180500 190000 200000 210000 220500 CODE E 198550 209000 220000 231000 242550 CODE F 231040 243200 256000 268800 282240 Consultation Paper No. 20/2023-24 Page 19 of 286.2 M/s ITBPL has proposed the following % increase in the Tariff Rates for Scheduled Flights on Y-o-Y basis at Biju Patnaik International Airport, Bhubaneswar as stated in the table below: Table 9: Y-o-Y Percentage (%) increase in the Tariff rates for the different categories of Scheduled Flights in respect of the First Control Period (A) Passenger Flights FY FY FY FY 2024-25 2025-26 2026-27 2027-28 Aircraft Full Full Full Full Pax Ramp Pax Ramp Pax Ramp Pax Ramp Type Service Service Service Service Domestic Passenger Flight Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% International Passenger Flight Code B 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code C 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code D 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code E 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Code F 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% (B) Cargo Flights FY FY FY FY Aircraft 2024-25 2025-26 2026-27 2027-28 Type Ramp Services Ramp Services Ramp Services Ramp Services Domestic Cargo Flights Code B 5% 5% 5% 5% Code C 5% 5% 5% 5% Code D 5% 5% 5% 5% Code E 5% 5% 5% 5% Code F 5% 5% 5% 5% International Cargo Flights Code B 5% 5% 5% 5% Code C 5% 5% 5% 5% Code D 5% 5% 5% 5% Code E 5% 5% 5% 5% Code F 5% 5% 5% 5% 6.3 M/s ITBPL has also submitted a separate Tariff Rate Card for Non-Scheduled and General Aviation Flights as per the table given below: - Consultation Paper No. 20/2023-24 Page 20 of 28Table 10: Proposed Tariff Rates for Non-Scheduled Flights submitted by M/s ITBPL for the First Control Period (Rates in ₹) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. A/C Category Maximum Take Off Weight (MTOW) HELICOPTER 8123 13321 8550 14022 9000 14760 9450 15498 9923 16273 ≤ 6000 12184 27382 12825 28823 13500 30340 14175 31857 14884 33450 >6000 - 12000 16696 37003 17575 38950 18500 41000 19425 43050 20396 45203 >12000 - 25000 27075 42553 28500 44793 30000 47150 31500 49508 33075 51983 >25000 - 40000 40613 64754 42750 68163 45000 71750 47250 75338 49613 79104 >40000 - 70000 54150 81406 57000 85690 60000 90200 63000 94710 66150 99446 >70000 - 100000 88445 109157 93100 114903 98000 120950 102900 126998 108045 133347 > 100000 - 150000 112813 162811 118750 171380 125000 180400 131250 189420 137813 198891 > 150000 & above 135375 185013 142500 194750 150000 205000 157500 215250 165375 226013 Dom. = Domestic; Intl. = International 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% Y-o-Y increase in Tariff Rates from FY 2024-25 onward (Table 9). 6.5 The Authority also notes that M/s ITBPL proposed a separate Tariff Rate card for Non-Scheduled Flights and has proposed an increase of 5% Y-o-Y 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 minimum level of revenues to cover up its Operating Expenses & earn reasonable return on its investment. Considering the above, the 5% Y-o-Y increase in Tariff Rates proposed by the ISP from FY 2024-25 onward appears reasonable. 6.7 The Authority is of the view that the Tariff for Domestic ‘Non-Scheduled and General Aviation Flights 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 Rate Card in case of International ‘Non-Scheduled & General Aviation Flights’ 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 ITBPL should ensure compliance towards Standardization of Ground Handling Equipment at Biju Patnaik International Airport, Bhubaneswar 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. 20/2023-24 Page 21 of 28Authority’s Proposals regarding Tariff for Ground Handling Services in respect of the ISP for the First Control Period: The Authority proposes to consider 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 ITBPL at Biju Patnaik International Airport, Bhubaneswar in respect of Scheduled Flights, International ‘Non-Scheduled & General Aviation Flights’ 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 Flights’ 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(s) is to be levied over and above the approved Tariff Rates. 6.14 M/s ITBPL shall ensure compliance towards Standardization of Ground Handling Equipment at Biju Patnaik International Airport, Bhubaneswar 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. 20/2023-24 Page 22 of 28CHAPTER 7: SUMMARY OF AUTHORITY’S PROPOSALS The below-mentioned summary provides the Authority's proposals relating to relevant chapters regarding the Tariff determination of Ground Handling Services for M/s ITBPL at Biju Patnaik International Airport, Bhubaneswar, for Stakeholders’ Consultation purpose: Chapter Para Summary of Authority’s Proposals Page No. Based on the material before it and its analysis, the Authority proposes to Chapter 2.8 consider the Tariff determination exercise for M/s ITBPL, in respect of Ground Handling Services being provided by the ISP at Biju Patnaik 9 No.2 International Airport, Bhubaneswar under the ‘Light Touch Approach’ for the First Control Period, as the regulated service is deemed ‘Not Material’. Chapter 3.8 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 First 11 No. 3 Control Period (FY 2023-24 to FY 2027-28) as per Table 3. Chapter 4.7 Based on the material before it and its analysis, the Authority proposes to 14 No. 4 consider the projected CAPEX for the First Control Period as per Table 4. Chapter 5.8 Based on the available material and its analysis, the Authority proposes to 18 No. 5 consider the OPEX for the First Control Period as per Table 6. To consider the Tariff Rates for Ground Handling Services provided by M/s ITBPL at Biju Patnaik International Airport, Bhubaneswar in respect of 6.10 Scheduled Flights, International ‘Non-Scheduled & General Aviation Flights’ and Item-wise Tariff Rate Card for Domestic and International Flights, for the First Control Period, as per Annexures (I, II & III). The Authority proposes that the Tariff for Domestic ‘Non-Scheduled and 6.11 General Aviation Flights’ 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 22 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 ITBPL shall ensure compliance towards Standardization of Ground Handling Equipment at Biju Patnaik International 6.14 Airport, Bhubaneswar 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. 20/2023-24 Page 23 of 28CHAPTER 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 22.12.2023. 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. 20/2023-24 Page 24 of 28ANNEXURE I TARIFF RATE CARD FOR M/s INDOTHAI BHUBANESWAR PRIVATE LIMITED IN RESPECT OF DOMESTIC* & INTERNATIONAL SCHEDULED FLIGHTS AT BIJU PATNAIK INTERNATIONAL AIRPORT, BHUBANESWAR FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (A) Passenger Flights (Rates in ₹) Domestic Passenger Flight FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Full Full Full Full Full Pax. Ramp Service Pax. Ramp Service Pax. Ramp Service Pax. Ramp Service Pax. Ramp Service CODE B 5198 7798 12996 5472 8208 13680 5760 8640 14400 6048 9072 15120 6350 9526 15876 CODE C 6931 10397 17328 7296 10944 18240 7680 11520 19200 8064 12096 20160 8467 12701 21168 CODE D 8664 12996 21660 9120 13680 22800 9600 14400 24000 10080 15120 25200 10584 15876 26460 CODE E 20794 31190 51984 21888 32832 54720 23040 34560 57600 24192 36288 60480 25402 38102 63504 CODE F 41587 62381 103968 43776 65664 109440 46080 69120 115200 48384 72576 120960 50803 76205 127008 International Passenger Flights CODE B 21101 49236 70337 22212 51827 74039 23381 54555 77936 24550 57283 81833 25777 60147 85925 CODE C 21660 50540 72200 22800 53200 76000 24000 56000 80000 25200 58800 84000 26460 61740 88200 CODE D 26858 62670 89528 28272 65968 94240 29760 69440 99200 31248 72912 104160 32810 76558 109368 35522 82886 118408 37392 87248 124640 39360 91840 131200 41328 96432 137760 43394 101254 144648 CODE E CODE F 40721 95015 135736 42864 100016 142880 45120 105280 150400 47376 110544 157920 49745 116071 165816 *Tariff for Domestic Scheduled Flights is also applicable to Domestic ‘Non-Scheduled & General Aviation Flights’. (B) Cargo Flights Domestic Cargo Flights FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Ramp Service Ramp Service Ramp Service Ramp Service Ramp Service CODE B 39710 41800 44000 46200 48510 CODE C 54150 57000 60000 63000 66150 CODE D 144400 152000 160000 168000 176400 CODE E 189525 199500 210000 220500 231525 CODE F 225625 237500 250000 262500 275625 International Cargo Flights CODE B 64980 68400 72000 75600 79380 CODE C 158840 167200 176000 184800 194040 CODE D 180500 190000 200000 210000 220500 CODE E 198550 209000 220000 231000 242550 CODE F 231040 243200 256000 268800 282240 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. 20/2023-24 Page 25 of 28ANNEXURE II TARIFF RATE CARD FOR M/s INDOTHAI BHUBANESWAR PRIVATE LIMITED FOR INTERNATIONAL ‘NON-SCHEDULED & GENERAL AVIATION FLIGHTS’ AT BIJU PATNAIK INTERNATIONAL AIRPORT, BHUBANESWAR, FOR THE FIRST CONTROL PERIOD (FY 2023-24 to FY 2027-28) PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Proposed Tariff Rates for Ground Handling Services (Rates in ₹) FY FY FY FY FY 2023-24 2024-25 2025-26 2026-27 2027-28 A/C Category International International International International International Maximum Take Off Weight (MTOW) HELICOPTER 13321 14022 14760 15498 16273 ≤ 6000 27382 28823 30340 31857 33450 >6000 - 12000 37003 38950 41000 43050 45203 >12000 - 25000 42553 44793 47150 49508 51983 >25000 - 40000 64754 68163 71750 75338 79104 >40000 - 70000 81406 85690 90200 94710 99446 >70000 - 100000 109157 114903 120950 126998 133347 > 100000 - 150000 162811 171380 180400 189420 198891 > 150000 & Above 185013 194750 205000 215250 226013 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. 20/2023-24 Page 26 of 28ANNEXURE III RATE CARD FOR ITEM-WISE CHARGES IN RESPECT OF GROUND HANDLING SERVICES FOR M/s INDOTHAI BHUBANESWAR PRIVATE LIMITED AT BIJU PATNAIK INTERNATIONAL AIRPORT, BHUBANESWAR PROPOSED BY AERA FOR STAKEHOLDERS’ CONSULTATION Maximum Item-wise Charges in respect of Domestic* & International Flights for the First Control Period (FY 2023-24 to FY 2027-28) (Rates in ₹) S. SERVICES UNIT FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 NO. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. Intl. Dom. 1 Air Starter Unit Per 15000 7500 15750 7875 16538 8269 17364 8682 18233 9116 (NB) Start 2 Aircraft Per 16000 3000 16800 3150 17640 3308 18522 3473 19448 3647 Disinfection- Service Freighter Aircrafts 3 Aircraft Per 8000 4000 8400 4200 8820 4410 9261 4631 9724 4862 Disinfection- Pax Service Aircrafts Code C 4 Aircraft Per 32000 25000 33600 26250 35280 27563 37044 28941 38896 30388 Disinfection- Pax Service Aircrafts Code D/E 5 Aircraft Per 40000 - 42000 - 44100 - 46305 - 48620 - Disinfection- Pax Service Aircrafts Code F 6 Aircraft Per 2480 1875 2604 1969 2734 2067 2871 2171 3014 2279 Marshalling Service 7 Ambulift Per 10000 5000 10500 5250 11025 5513 11576 5788 12155 6078 flight leg 8 Apron Per Trip 1600 950 1680 998 1764 1047 1852 1100 1945 1155 Transport(Passeng er) 9 Arrange non- Per scheduled Crew flight Hotel 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. Accommodation (HOTAC) 10 ATC payment Per services flight 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 11 Baggage ID Per Service 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 12 Baggage /Cargo Per cart Hour 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 13 Blue collar staff Per staff per hour 800 400 840 420 882 441 926 463 972 486 14 Crew Transport Per Trip 1600 950 1680 998 1764 1047 1852 1100 1945 1155 15 Deportee/Inadmiss Per ible(INAD) passeng handling er 1200 - 1260 - 1323 - 1389 - 1459 - 16 Excess Baggage As per Fee(% of collectio 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. 10% of Exp. collection) n 17 Exterior Cleaning - Per - 52500 - 55125 - 57881 - 60775 - 63814 NB Service 18 Exterior Cleaning - Per - 150000 - 15750 - 165375 - 173644 - 182326 WB Service 0 19 Ground Power unit Per 10000 4700 10500 4935 11025 5182 11576 5441 12155 5713 90KVA Hour 20 Interior Deep Per 8000 5000 8400 5250 8820 5513 9261 5788 9724 6078 Cleaning - NB Service Consultation Paper No. 20/2023-24 Page 27 of 2821 Passenger Step Per 4000 1375 4200 1444 4410 1516 4631 1592 4862 1671 (mobile-NB) Hour 22 Pushback for Per 10000 5000 10500 5250 11025 5513 11576 5788 12155 6078 narrow body Push aircraft 23 Toiler truck Per 2400 1375 2520 1444 2646 1516 2778 1592 2917 1671 Service 24 Towing of narrow Per Tow 10000 5000 10500 5250 11025 5513 11576 5788 12155 6078 body aircraft 25 Unaccompanied per UM 1200 950 1260 998 1323 1047 1389 1100 1459 1155 Minor (UM) Handling 26 Vacuum Cleaner Per 4000 3750 4200 3938 4410 4134 4631 4341 4862 4558 Hour 27 VIP Vehicle Per Trip 20000 10000 21000 10500 22050 11025 23153 11576 24310 12155 (Innova range) 28 VIP Vehicle Per Trip 40000 25000 42000 26250 44100 27563 46305 28941 48620 30388 (Luxury- Mercedes/BMW/A UDI range) 29 Water truck Per 2400 1375 2520 1444 2646 1516 2778 1592 2917 1671 Service 30 Wheel chair Per 2400 400 2520 420 2646 441 2778 463 2917 486 Service 31 White Collar Staff Per staff 1200 600 1260 630 1323 662 1389 695 1459 729 per hour * Tariff for Domestic 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. 20/2023-24 Page 28 of 28

Continue your research