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Airports Economic Regulatory Authority of India Bill 2021, passed

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    5th Aug, 2021

Context

Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 got the approval of both houses of Parliament.

  • It amends the Airports Economic Regulatory Authority of India Act, 2008.  

Key features of the Bill

  • This short Bill proposes only one amendment to Section 2(i) of the Airports Economic Regulatory Authority of India Act, 2008.
  • Major Airport: The provision defines "major airport".
    • A major airport is one which has, or is designated to have, annual passenger throughput in excess of 3.5 million.
  • The central government may also designate an airport as a major airport by notification. 
  • The Act further provides that the tariffs of aeronautical charges at major airports shall be determined by the Airports Economic Regulatory Authority of India.

Reason behind the bill

  • The government intends to develop the low traffic volume of non-profitable airports also.
  • This will prove as a catalyst in the development of small airports and to enhance air connectivity in far-flung areas.

Significance

  • The revenue earned from these airports will be utilized for the development of airports in the Tier-II and Tier-III cities.
  • This would help in the development of more airports by the PPP route by expanding the air connectivity to relatively remote and far-flung areas.

Classification of Indian cities

  • These are classified as X (tier-1), Y (tier-2), and Z (tier-3) categories.
  • The classification is based on population density.
  • Eight metropolitan tier-1 cities of India: Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune.

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