Lok Sabha passes AERA bill on airport privatisation

31 Jul 2021 CW Team

The Airport Economic Regulatory Authority (AERA) Amendment Bill has been passed by the Lok Sabha on Thursday to privatise a small loss-making airport by joining it with a larger airport.

Civil Aviation Minister, Jyotiraditya Scindia, introduced the Amendment Bill and passed it amid din in the lower house. It offers to make changes to the definition of a significant airport under the AERA Act 2008 and will have to be passed by Rajya Sabha for the amendment to come into effect.

The action to club loss-making Airport Authority of India (AAI) run airports with larger ones is being initiated following criticism of the existing policy. It felt that the privatisation of the larger airports would leave AAI saddled with only small loss-making airports.

As indicated by the partner of J Sagar Associates, Poonam Verma, the bill offers to amend the definition of "major airport" under Section 2(i) of the Airports Economic Regulatory Authority Act, 2008, including a group of airports' in place of 'any other airport'.

Verma told the media that the objective of this amendment is to pair the smaller non-profitable airports with profitable airports as a package to the bidders to make it a possible combination for investment under PPP mode and that this move is also likely to help expand the air connectivity to relatively remote areas and, as a result, expedite the UDAN scheme. She also said that the amendment would allow AERA to regulate tariff and other charges for aeronautical services for not just major airports with annual passenger traffic of over 3.5 million but also a group of airports together.

The airport sector regulator decides the tariff of a single airport at present, and the amendment will allow for tariff fixation of more than one airport.

Also read:

Also read: Next stage of airport privatisation to begin in April

The Airport Economic Regulatory Authority (AERA) Amendment Bill has been passed by the Lok Sabha on Thursday to privatise a small loss-making airport by joining it with a larger airport. Civil Aviation Minister, Jyotiraditya Scindia, introduced the Amendment Bill and passed it amid din in the lower house. It offers to make changes to the definition of a significant airport under the AERA Act 2008 and will have to be passed by Rajya Sabha for the amendment to come into effect. The action to club loss-making Airport Authority of India (AAI) run airports with larger ones is being initiated following criticism of the existing policy. It felt that the privatisation of the larger airports would leave AAI saddled with only small loss-making airports. As indicated by the partner of J Sagar Associates, Poonam Verma, the bill offers to amend the definition of major airport under Section 2(i) of the Airports Economic Regulatory Authority Act, 2008, including a group of airports' in place of 'any other airport'. Verma told the media that the objective of this amendment is to pair the smaller non-profitable airports with profitable airports as a package to the bidders to make it a possible combination for investment under PPP mode and that this move is also likely to help expand the air connectivity to relatively remote areas and, as a result, expedite the UDAN scheme. She also said that the amendment would allow AERA to regulate tariff and other charges for aeronautical services for not just major airports with annual passenger traffic of over 3.5 million but also a group of airports together. The airport sector regulator decides the tariff of a single airport at present, and the amendment will allow for tariff fixation of more than one airport. Image Source Also read: Deloitte appointed as consultant for Nagpur airport privatisation Also read: Next stage of airport privatisation to begin in April

Infrastructure Energy

23 May 2025

TPG, Mavco to Acquire Siemens Gamesa鈥檚 India Wind Business

A consortium led by American private equity firm TPG, Mavco Investments, and former JSW Energy CEO Prashant Jain has approached the Competition Commission of India (CCI) to acquire Siemens Gamesa鈥檚 onshore wind business in India and Sri Lanka.The proposed acquisition involves TPG鈥檚 affiliates鈥擯eony Properties Pvt Ltd and TPG REGen SG Pte鈥攁nd Mavco Investments, a Murugappa family-owned company. According to a notice filed with the CCI on 15 May, the acquisition covers Siemens Gamesa Renewable Power鈥檚 manufacturing and assembly of onshore wind turbine generators, along with their opera..

Infrastructure Energy

23 May 2025

Waaree to Acquire Kamath Transformers for Rs 2.93 Bn

Waaree Energies announced on Monday that its board has approved the acquisition of Kamath Transformers Pvt Ltd for approximately Rs 2.93 billion as part of its business expansion strategy. Kamath Transformers is engaged in the manufacturing of transformers.In a regulatory filing, Waaree Energies stated that the acquisition would support the company鈥檚 growth plans and strengthen its position in the energy infrastructure segment.The board also approved the acquisition of Green New Delhi Forever Energy Pvt Ltd by Waaree Forever Energies Pvt Ltd, a wholly owned subsidiary. The shares will be acq..

Infrastructure Energy

23 May 2025

Everest To Source 5.5 MWp Solar Power from Gentari

Everest Industries has announced its plan to procure 5.5 megawatt-peak (MWp) of solar power from Gentari (Amplus Solar) under a group captive model, strengthening its renewable energy commitment in Maharashtra.As part of this initiative, the company will invest approximately Rs 17.6 million in Amplus Ampere, a special purpose vehicle (SPV) of Amplus Solar, by acquiring 1.76 million equity shares at a face value of Rs 10 each. The move is aimed at enabling captive open access for solar energy usage and enhancing Everest Industries' green energy footprint in the state.In FY 2023鈥�24, the compan..