Annexure II - AERA

management and administration. Consistent with the form of economic
oversight adopted, these costs may be offset by non-aeronautical revenues.
Conclusion:
ICAD does not endorse the Single Till regulation as most preferred form of regulation and
instead has taken a neutral position.
ICAD left till issue to the respective member states to adopt their choice of till based on
suitability to local condition.
Since the Concession Agreement contemplated a Dual Till and ICAD left the choice of Till to the
member states, we request MoCA being a member state to advise AERA to adopt Dual Till in
consonance with the provisions of the Concession Agreement.
A detailed analysis in this respect carried out by an independent agency M/s NERA (Consultant
of International repute having 20 offices across North America, Europe and Asia pacific and
ranked as No. 1 in consulting in year 2009, 2010 and 2011 by Vault .com) is enclosed as
Annexure A
b. Govt. of Andhra Pradesh (GoAP) stand on Till
We understand that the Govt. of Andhra Pradesh (GoAP) has written to AERA
clarifying its position on Till:
GoAP has categorically clarified that article 10 (3) of the Concession
Agreement gives the right to HIAL to set tariffs for non-airport facilities and
services. The concession does not envisage cross subsidy of Non- Aeronautical
revenues to defray aeronautical charges.
CONCLUSION ON TILL:
1 The reading of various provisions of the CA it can be concluded that a Dual till was
envisaged in the CA.
2 The Ministry of Civil Aviat ion has adopted Hybrid Till for smaller airports as also
for Delhi and Mumbai and as such it is illogical to assume that a Single Till would
have been envisaged for Hyderabad Airport.
B. Land Monetization/Usage of Land
Annexure II-B
As already mentioned earlier in this letter, the following are our submissions with
regard to the treatment of land usage and revenue therefrom as per the provisions
of Land Lease Agreement and Concession Agreement respectively:
CP No. 9/2013-14/T-12023(14)/1/2012- Tariff- Vol - III Annexure II-B Page 8 of 51
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