The Parliament on Wednesday passed the bill seeking to amend Section 2(i) of the Airports Economic Regulatory Authority of India Act, 2008. The bill named Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 seeks to pair the profitable and non-profitable airports that will be offered to the bidders in public – private partnership mode in the form of a package.
The bill was passed by the Lok Sabha on 29th July, 2021 and was passed in the Rajya Sabha today. This would thus help in encouraging the growth of smaller non- profitable airports. The amended provision defines the term major airports. The Central government through notification may declare an airport as a major airport.
Jyotiraditya M. Sindia, Civil Aviation Minister said that since the major airports don’t include a group of airports, the tariffs for the same would remain undetermined as yet. He further added that such an approach would expand air connectivity to remote areas. Thus, clubbing the non-profitable airports with profitable airports would develop not only the high traffic volume profitable airports but also the low traffic volume non-profitable airports
The bill proposes to amend the Section 2 (i) in order to enhance the scope of determining tariffs for a group of airports. This would help in developing the smaller airports.