Annexure II - AERA

("Authority") was established on iz" May 2009. Following the notification of the powers
and functions of the Authority w.eJ. 01 51 September 2009 the Ministry of Civil Aviation,
9. in October 2009, transferred the subject issue to the Authority for its consideration,
along with copies of relevant extracts of files and correspondences.
10. AERA thereafter had issued a White Paper on 'Regulatory Objectives and Philosophy in
Economic Regulation of Airports and Air Navigation Services' dated nOd December 2009
('White Paper'), highlighting various issues relating to economic regulation of airports,
air navigation services, cargo, ground handling and fuel supply services. In the said
White Paper, AERAhas asserted that Single Till is appropriate in India.
11. In the said White Paper, the AERA sought views on the most appropriate tariff structure
in the Indian context. HIAL inter alia provided its response and stated that as per the
Concession Agreement Single Till cannot be adopted and also provided a series of
cogent justifications to that effect and requested to adopt Dual till for its airport.
12. Thereafter AERA issued Consultation Paper No. 3/2009-10 on zs" February, 2010,
reasserting that the most appropriate till in the Indian context was the single till to
which HIAL had made further submissions and suggestions regarding the said proposals
and highlighted the merits of pursuing a Hybrid Till or Dual Till tariff structure, as
compared to the Single Till tariff structure being proposed by the AERA in view of the
provisions of the Concession Agreement executed between the Government of India
through Ministry of Civil Aviation with HIAL.
13. In the meanwhile HIAL had made a tariff filing with AERA for determination of UDF.
AERA came out with a consultation paper (Consultation Paper 07/2010-11) for
approving the UDF at HIALon ad-hoc basis till finalization of philosophy.
14. During consultation MoCA had submitted as under:
Annexure II-B
At the consultation meeting:
Ministry had participated in the stakeholder's consultation meeting held on zs"
September 2010. Shri Oma Nand, Under Secretary, representing the Ministry of
Civil Aviation stated that the approach suggested by the Authority for economic
regulation of airport, specifically the issue of "regulatory till", is under active
consideration of the Central Government for giving its views. Pending the
same, the Central Government would reguest the Authority to decide the
subject proposal, purely on an ad-hoc basis.
Written Submission by MoCA:
Ministry in its letter: No AV.20036/028/2004 AAI (VoI.IV) Dated 12th October
2010 submitted to Authority as under:
"I am directed to refer to AERA's D.O. No. AERA/20010/HIAL-UDF/2010­
11/Vol.II/970 dated zs" September, 2010 on the subject noted above. The
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 3 of 51
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