The President addressed the Parliament after the 2009 Lok Sabha Elections on 4th June 2009.  She also addressed Parliament on 22nd February 2010, as well as on 21st February 2011.  The tables below highlight some items from the agenda of the central government as outlined in these speeches, as well as the initiatives undertaken with respect to these agenda items. Table 1: Some Items from the President’s Address to Parliament on 4th June 2009

Agenda Items outlined in the President’s Speech Current Status
Establishment of National Counter-Terrorism Centre Proposed launch of NCTC in March 2011 on hold
Enactment of legislation for prevention of communal violence Communal Violence Bill 2005 pending in Parliament. New bill drafted by NAC but not introduced in Parliament
Unique Identity Card scheme to be implemented in three years Unique Identification Authority of India created under Planning Commission on 28 January 2009.  Bill to give statutory status pending in Parliament
Establishment of a regulator for the pension sector Bill introduced in Lok Sabha on 24 March 2011
Convergence of NREGA with other programs; expansion of works permitted; independent monitoring and grievance redressal  
Rashtriya Swasthya Bima Yojana to cover all families below the poverty line in five years  
Enactment of Right to Free and Compulsory Education Bill Bill passed in 2009 and brought into force on 1 April 2009
Madhyamik Shiksha Abhiyan to universalize access to secondary education Rashtriya Madhyamik Shiksha Abhiyan launched in March 2009
National Mission for Female Literacy to make every woman literate in five years National Literacy Mission recast in 2009 to focus on female literacy
Construction of 1.2 crore rural houses under Indira Awas Yojana in five years  
Introduction of Rajiv Awas Yojana for slum dwellers and urban poor Phase I approved by Cabinet on 2 June 2011
Enactment of National Food Security Act Introduced in Lok Sabha on 22 December 2011
Enactment of Amendment Bill to Land Acquisition Act and Rehabilitation and Resettlement Bill Land Acquisition, Rehabilitation and Resettlement Bill 2011 introduced in Lok Sabha on 7 September 2011
Enactment of Women’s Reservation Bill Passed by Rajya Sabha, pending in Lok Sabha
Constitutional Amendment for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Amendment of RTI to provide for disclosure by government in all non-strategic areas  
Model Public Services Law to be drawn up in consultation with states Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievance Bill,     2011 introduced in Lok Sabha on 20 December 2011
Introduction of Goods and Services Tax Constitutional Amendment Bill introduced in Lok Sabha on 22 March 2011
National Council for Human Resources in Health Introduced in Rajya Sabha on 22 December 2011
National Council for Higher Education Bill introduced in Rajya Sabha on 28 December 2011

*Note: Blank cells indicate that PRS has not been able to find official information in the public domain. Table 2: Some Items from the President’s speech to Parliament on 22nd February 2010

Agenda Items outlined in the President’s Speech Current Status
Introduction of legislation to ensure food security Introduced in Lok Sabha on 22 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Introduction of Rajiv Awas Yojana for urban poor and slum dwellers Phase I approved by Cabinet on 2 June 2011
Disposal of remaining claims under the Scheduled Tribes  and Other Traditional Forest Dwellers Act  
Introduction of amendment to the Wakf Act Passed by Lok Sabha; pending in Rajya Sabha
Enactment of Communal Violence (Prevention, Control and Rehabilitation of Victims) Bill, 2005 Pending in Rajya Sabha since 2005
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Constitutional amendments for 50 percent reservation for women in panchayats and urban local bodies Two Bills introduced in Lok Sabha in November 2009; both pending in Parliament
Establishment of National Council for Higher Education and Research Higher Education and Research Bill, 2011 introduced in Rajya Sabha on 28 December 2011
Legislation for facilitating participation of foreign academic institutions in the education sector Foreign Educational Institutions Bill, 2010 introduced in Lok Sabha on 3 May 2010
Voting rights for Indian citizens living abroad Bill passed.  NRIs can vote at the place of residence that is mentioned in their passport

Table 3: Some Items from the President’s speech to Parliament on 21st February 2011

Agenda Items outlined in the President’s Speech Current Status
Enactment of Food Security Law Introduced in Lok Sabha on 22 December 2011
Whistleblower Bill Bill passed by Lok Sabha; pending in Rajya Sabha
Enactment of Judicial Standards and Accountability Bill Introduced in Lok Sabha on 1 December 2010
Enactment of new Mines and Minerals Bill Introduced in Lok Sabha on 12 December 2011
Rural teledensity of 40 percent by 2014 Rural teledensity of 33% as of February 2011
Construction of 1.2 crore rural houses during 2009-14  
Enactment of Women’s Reservation Bill Passed by Rajya Sabha; pending in Lok Sabha
Introduction of Bill regarding protection of children from sexual offences Introduced in Rajya Sabha on 23 March 2011
Introduction of Biotechnology Regulatory Authority of India Bill Not introduced till date

The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 was passed by Parliament on August 4, 2021.  It amends the Airports Economic Regulatory Authority of India Act, 2008.  This Bill was introduced in Lok Sabha during the budget session this year in March 2021.  Subsequently, it was referred to the Standing Committee on Transport, Tourism, and Culture, which submitted its report on July 22, 2021.

Typically, cities have one civilian airport which provides all aeronautical services in that area.  These services include air traffic management, landing and parking of aircraft, and ground handling services.  This makes airports natural monopolies in the area.  To ensure that private airport operators do not misuse their monopoly, the need for an independent tariff regulator in the airport sector was felt.  Hence, the Airport Economic Regulatory Authority (AERA) was established as an independent body under the 2008 Act to regulate tariffs and other charges (development fee and passenger service fee) for aeronautical services at major airports.  

For the remaining airports, these tariffs are determined by the Airports Authority of India (AAI), which is a body under the Ministry of Civil Aviation.  In addition, AAI leases out airports under the public-private partnership (PPP) model for operation, management, and development.  Before AERA was set up, AAI determined and fixed the aeronautical charges for all airports.  It also prescribed performance standards for all airports and monitored them.  Various committees had noted that AAI performed the role of airport operator as well as the regulator, which resulted in a conflict of interest.

The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh.  The central government may also designate any airport as a major airport through a notification.  The Bill adds that the central government may group airports and notify the group as a major airport.  Thus, when a small airport will be clubbed in a group and the group is notified as a major airport, its tariff will be determined by AERA instead of AAI.  Note that AERA will not determine the tariff if such tariff or tariff structures or the amount of development fees has been incorporated in the bidding document, which is the basis for the award of operatorship of that airport.

The amendments under the Bill raise some concerns regarding the grouping of airports and the capacity of the regulator.

  • Grouping of airports: The Statement of Objects and Reasons of the Bill states that government will club together profit-making and loss-making airports and offer them as a package in PPP mode to the prospective bidders.  This may be a policy decision to revive loss-making airports.  With the passage of the Bill, AERA will treat a group of airports as one entity.  One of the ways in which tariffs may be structured for the grouped entity would be through cross-subsidies.  This would involve compensating loss-making airports with the revenue generated from the profit-making airports.  If such a model is used, it may increase the cost of services to the end-consumers of profit-making airports or could reduce the profitability of such airports.  The experiences from other sectors such as electricity show that cross-subsidisation may lead to pricing problems in long term. 
     
  • Capacity of the regulator: AERA was created to provide a level playing field in the aviation sector and resolve the conflict of interest that arises with AAI both operating and regulating tariffs at airports.  During the examination of the AERA Bill, 2007 by the Standing Committee, the Ministry of Civil Aviation informed the Committee that AERA should regulate tariff and monitor performance standards only at major airports.  Depending upon future developments in the sector, and as the regulator built its capacity, other functions could be subsequently assigned to the regulator.

As of 2020, there are 125 operational airports in India (includes international airports, customs airports, and civil enclaves).  The number of airports under the purview of AERA increased from 11 in 2007 to 24 in 2019.  For the remaining airports, tariffs are still determined by AAI.  In the last five years (2014 to 2019), air passenger traffic increased from 11.3 crore to 34.9 crore (which is an annual growth rate of 10%).  Till 2030-31, air traffic in the country is expected to continue growing at an average annual rate of 10-11%

Before 2019, an airport with annual passenger traffic of at least 15 lakh was considered a major airport.  In 2019, the AERA Act was amended to increase this threshold to 35 lakh.  The Statement of Objects and Reasons of the 2019 Bill stated that the exponential growth of the aviation sector has put tremendous pressure on AERA, while its resources are limited.  Therefore, if too many airports come under the purview of AERA, it will not be able to perform its functions efficiently.  Consequently, in 2019, the number of airports under the purview of AERA was reduced.  Now, with the passage of the 2021 Bill, AERA will have to again regulate tariffs at more airports as and when notified by the central government.  Thus, the capacity of AERA may be needed to be enhanced for extending its scope to other airports.

Table 1: List of major airports in India (as of June 2019)

Ahmedabad

Delhi  

Mumbai  

Amritsar  

Goa  

Patna  

Bengaluru  

Guwahati  

Pune  

Bhubaneswar     

Hyderabad  

Raipur  

Calicut  

Jaipur  

Thiruvananthapuram     

Chandigarh  

Kolkata  

Tiruchirappalli     

Chennai  

Lucknow  

Varanasi  

Cochin  

Mangalore  

Kannur 

Source: AERA website as accessed on August 2, 2021; PRS.