Annexure II - AERA

derive any material commercial advantage from the airport, the Authority is in
effect indirectly regulating the use of land by airport operators.
CONCLUSION ON LAND USAGE
1. It is clear that the purpose of Land lease is twofold i.e. for (a) Airport and (b) Non­
Airport activities as mentioned in the Land Lease Agreement.
2. As per the provisions of the AERA Act, the Regulator is authorised to determine charges
pertaining to the aeronautical charges at the Airport. Hence, the Regulator has no
jurisdiction over the Land earmarked for Non-Airport activities.
3. Under the concession agreement HIAL or the service provider have been given
unrestricted right to determine the charges in respect to the activities other than the
Regulated Charges as mentioned in Schedule 6 of the Concession Agreement. There is
no provision as regards to cross-subsidizing the aero revenue using the revenues from
Non-Airport Activities/real estate. Nor is there any mention about assigning a market
value to land and reducing it from RAB . In fact the GoAP had given the land on lease as
the project (which also includes Non-Airport Activities) was not feasible if the promoters
were to acquire the Land on its own for the Project. By assigning a value to the land and
reducing the same from the RAB AERA is contemplating an action which is not envisaged
in the Concession Agreement and also goes against the intended purpose of the Land
Lease Agreement and would significantly affect the feasibility of the Non-Airport activity
component of the project
Hence we request to leave the usage and treatment of the Land to the GoAP and GHIAL
being Lessor and Lessee respectively. It may be appreciated that GoAP had already
clarified to AERA that the reduction of Land value from RAB was not envisaged.
A. Apart from above we have the following additional evidences in support of
adoption of DUAL Till
a. Ministry Of Civil Aviation's affidavit in AERAAT
MoCA has filed its reply clarifying its contractual obligations with HIAL. As per
MoCA, the terms of the Concession Agreement with HIAL has to form a vital
consideration and basis for the determination of tariff for aeronautical services
at the airport. MoCA in its affidavit to AERAAT has mentioned that it has used
Shared/Hybrid till for determination of UDFof following airports:
Jalpur,
Amritsar,
Udaipur,
Varanasi,
Mangalore,
Annexure II-B
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 11 of 51
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