{"id":12290,"date":"2021-07-30T00:00:00","date_gmt":"2021-07-30T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/30-07-2021\/airport-economic-regulatory-authority-amendment-bill-2021\/"},"modified":"2024-05-06T16:08:51","modified_gmt":"2024-05-06T10:38:51","slug":"airport-economic-regulatory-authority-amendment-bill-2021","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-07-2021\/airport-economic-regulatory-authority-amendment-bill-2021","title":{"rendered":"Airport Economic Regulatory Authority Amendment Bill, 2021"},"content":{"rendered":"<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>In News\u00a0<\/u><\/strong><\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Recently, the Lok Sabha has passed the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>Airport Economic Regulatory Authority (AERA)<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> Amendment Bill, 2021.<\/span><\/span><\/span><\/p>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>About<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">The Bill was first introduced in March 2021, and was subsequently referred to a <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>parliamentary panel<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">, which approved it without any changes.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">It seeks to amend the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>Airports Economic Regulatory Authority of India Act, 2008<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>Key Provisions\u00a0<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">It will allow AERA to <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>regulate tariff<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> and other charges for aeronautical services for not just <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>major airports<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> with annual passenger tr<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>affic of more than 3.5 million<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">, but <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>also a group of airports together.<\/strong><\/span><\/span><\/span>\n<ul>\n<li style=\"list-style-type: circle;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Currently, the airport sector regulator determines the tariff <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>of a single airport<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> and the amendment <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>will allow for tariff fixation of more than one airport.<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">It proposes to modify the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>definition of a major airport <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">to include a group of airports under the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>AERA Act 2008<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">It aims to pair the smaller <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>non-profitable airports<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> with <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>profitable airports<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> as a combination\/package to bidders to make it a viable combination for investment under <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>PPP mode.<\/strong><\/span><\/span><\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><img decoding=\"async\" style=\"height: 302px; width: 448px;\" src=\"https:\/\/lh5.googleusercontent.com\/RAcgVfakDNmF4571di8gh4J_AVpe7diG25OGQHF0rNTjuG6byfIwWHFaFb7Qikp8sR-cZYEhCYmHUk1JDYy1shIsLdj-FXEFQgIq2fqnZP68O-ee-rgkv2sJr-DluAEcfpdlE_Tu\" \/><\/span><\/span><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Image Courtesy: <\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/www.business-standard.com\/article\/economy-policy\/airport-privatisation-gets-a-fillip-as-lok-sabha-passes-aera-bill-121072901429_1.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #1155cc;\"><u>BS<\/u><\/span><\/span><\/span><\/a><\/p>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>Significance\u00a0\u00a0<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">This move is also likely to help in expanding the air connectivity to relatively remote areas and as a result, expediting the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #1155cc;\"><strong><u>UDAN scheme<\/u><\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">.\u00a0<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">It will pave the way for the privatisation of a small l<\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>oss-making airpor<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">t by clubbing it with a larger airport.<\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>Concerns<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Lack of clarity in the bill on the criterion for deciding which airports will be clubbed together to qualify under \u2018a group of airports\u2019 definition.<\/span><\/span><\/span><\/li>\n<\/ul>\n<div>\n<table style=\"border-collapse: collapse; border: none; table-layout: fixed; width: 624px;\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td style=\"background-color: #fff2cc; vertical-align: top; border: 1px solid #000000;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong><u>Airports Economic Regulatory Authority<\/u><\/strong><\/span><\/span><\/span><\/p>\n<ul>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">With the advent of <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>private players in the airport sector<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"> in 2006, there was a risk of <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>monopoly by them<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">. To counter this, the <\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>Airports Economic Regulatory Authority of India was established in 2008 under the AERA Act<\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Before AERA came into existence, the Airports Authority of India, functioning under the civil aviation ministry, was in charge of monitoring services at airports.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Several committees had pointed out a conflict of interest since AAI is also a regulatory body.<\/span><\/span><\/span><\/li>\n<li style=\"list-style-type: disc;\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\"><strong>Functions: <\/strong><\/span><\/span><\/span><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">To determine the tariffs and other charges( capital expenditure and passenger service fee) for the aeronautical services at major airports.<\/span><\/span><\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #000000;\">Source :<\/span><\/span><\/span><a style=\"text-decoration: none;\" href=\"https:\/\/www.livemint.com\/news\/india\/lok-sabha-passes-airports-economic-regulatory-authority-amendment-bill-11627560896807.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-size: 11pt;\"><span style=\"font-family: 'Book Antiqua',serif;\"><span style=\"color: #1155cc;\"><u>LM<\/u><\/span><\/span><\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News\u00a0 Recently, the Lok Sabha has passed the Airport Economic Regulatory Authority (AERA) Amendment Bill, 2021. About The Bill was first introduced in March 2021, and was subsequently referred to a parliamentary panel, which approved it without any changes. It seeks to amend the Airports Economic Regulatory Authority of India Act, 2008. Key Provisions\u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12291,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[70,30],"class_list":["post-12290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","tag-features-amendments","tag-gs-2"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/6654949current-affairs.jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/12290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=12290"}],"version-history":[{"count":1,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/12290\/revisions"}],"predecessor-version":[{"id":24330,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/12290\/revisions\/24330"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/12291"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=12290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=12290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=12290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}