AERA Amendment Bill 2021 UPSC | Explained | Significance

AERA Amendment Bill 2021 UPSC | Explained | Why In The News ?

Recently, the Lok Sabha passed the Airports Economic Regulatory Authority of India (AERA) Amendment Bill, 2021.

AERA Amendment Bill 2021 UPSC | Explained :

It was first introduced in March 2021.
Then it Was subsequently referred to a parliamentary standing committee on transport, tourism and culture, which approved it without any changes.

Major Provisions:

It proposes to amend the definition of major airport to include a group of airports.
The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.
The central government may also designate any airport as a major airport by a notification.
Tariff: It will allow AERA to regulate tariff and other charges for aeronautical services for not just major airports with annual passenger traffic of more than 35 lakh, but also a group of airports.
The government will be able to club profitable and non-profitable airports as a combination/package to bidders to make it a viable combination for investment under PPP (Public-Private Partnership) mode. Best Books Recommended By IAS Toppers For UPSC Prelims & Mains

Major airports:

The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.
The central government may also designate any airport as a major airport by a notification.
The Bill adds that the central government may group airports and notify the group as a major airport.

Significance:

It will help in expanding the air connectivity to relatively remote areas and as a result, expediting the UDAN regional connectivity scheme.
It will encourage development of smaller airports.

The Airports Economic Regulatory Authority of India Act, 2008 (AERA Act) was passed which set up the AERA.
It is a statutory body.
It was set up, keeping in mind that the country needs to have an independent regulator who has transparent rules and can take care of the interests of the service providers as well as that of the consumers.

Functions:

The AERA regulates tariffs and other charges (development fee and passenger service fee) for aeronautical services (air traffic management, landing and parking of aircraft, ground handling services) at major airports.

Source – Indian Express And PRS.Org