Cabinet okays Bill for airport economic regulatory authority

In line with international practices, Indian airports will soon have a tariff regulator.

The government today cleared the proposed Bill for setting up the Airport Economic Regulatory Authority (AERA).

The authority will approve tariff structure (airport charges including air navigation charges) and monitor the pre-set standards for airports.

Charges for navigation services that are levied by the Airport Authority of India (AAI) will also be subject to the AERA's approval.

Private airports executives said they were studying the structure of the proposed authority and its implications. "We will only be able to comment after studying the Bill," said a Mumbai International Airport (MIAL) executive.

The prime objective of the AERA will be to create a level-playing field and foster healthy competition among all major airports (including government-owned, public-private partnership based, and private).

It will also encourage investment in airport facilities, regulate tariffs of aeronautical services, protection of reasonable interest of users, operate efficient, economic and viable airports at notified airports.

The AERA will determine tariff once in 5 years and may, if it considers appropriate in public interest, amend the tariff from time to time during the five years.

The AERA would consist of a chairperson and two professional experts nominated by the government.

"Whenever the AERA is deciding a matter involving a civil enclave in a defence airfield, the defence ministry will be represented by an additional member on the AERA," a government official said.

The authority will also have penal powers in case of willful failure to comply with its orders and directions, apart from powers to penalise for offenses by companies and government departments.

In another significant decision, the cabinet also approved the launch of a mission on nano science and technology (Nano Mission), which will have an allocation of Rs 1,000 crore for five years.

The Cabinet gave its approval for amendments in the members of Parliament (office expenses allowance) Rules, 1998, which will enable a Member of Parliament to engage any number of persons in his constituency or Delhi, for obtaining secretarial assistance.

The monetary ceiling for obtaining such secretarial assistance would be Rs 14,000 per month.

The Cabinet also gave its nod to India becoming a member of the Hauge Conference on Private International Law, which has 65 countries as member states.

The objective of the conference is to work for progressive unification of rules of private international law by finding internationally agreed approaches on issues like jurisdiction of courts, applicable law and recognition of judgments.

The Cabinet also approved for moving the official amendments to the Constitution Bill, 2004, and National Commission for Minorities (repeal) Bill, 2004 in Parliament.