Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / News/  Airport regulator may oversee cargo services
BackBack

Airport regulator may oversee cargo services

Airport regulator may oversee cargo services

Monitoring standards: Cargo services have been included in the airports economic regulatory authority Bill. Photograph: Rajeev Dabral / MintPremium

Monitoring standards: Cargo services have been included in the airports economic regulatory authority Bill. Photograph: Rajeev Dabral / Mint

Bangalore: The government is set to regulate transport of cargo by air, a senior commerce ministry official told a meeting of representatives from trade and cargo associations.

Cargo services at airports have been included in the draft Airports Economic Regulatory Authority of India Bill, 2007, R. Gopalan, additional secretary, commerce ministry, said in Chennai recently, according to a person who attended the meeting but didn’t want to be named.

Monitoring standards: Cargo services have been included in the airports economic regulatory authority Bill. Photograph: Rajeev Dabral / Mint

Trade bodies had sought the inclusion of cargo activities in the proposed legislation, which is modelled on a UK regulatory system where aeronautical services do not cover cargo and related activities.

A parliamentary standing committee headed by Sitaram Yechury, of the Communist Party of India (Marxist) had recommended including cargo in the Bill after hearing the air cargo industry.

Cargo transported by air accounts for about 5% of India’s total external trade by volume, and 35% in terms of value, said an official with the Federation of Indian Export Organisations. In comparison, 95% of India’s trade by volume and 65% by value moves by sea. A miniscule portion of trade moves over land.

Tariffs at the 12 state-owned ports are regulated by the Tariff Authority for Major Ports, and these account for about 75% of the cargo handled in India.

Typically, airport operators earn about 35% of their revenues from cargo services, while the majority 65% comes from passengers. “We want all airport operators, including the Airports Authority of India and private airport operators that provide cargo services, to be regulated," said Krishnan.

This includes terminal processing and storage charges and demurrage. The proposed body for airports will have a chairperson and two other members.

The prices set by the regulator for services provided by airport operators will be valid for a five-year period. The regulator, however, will have powers to revise the tariffs.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 21 Aug 2008, 01:11 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App