Aviation: Suresh Prabhu unveils new transaction structure for future Greenfield Airports
The MBAY for greenfield airports for FY 18-19 is proposed to be INR 400 per passenger. The number has been arrived at on the basis of projected cash flow analysis for greenfield airports of different capacities and a review of aeronautical yields at Indian and global airports in the recent past.
Civil Aviation Minister Suresh Prabhu today unveiled a new transaction structure for future greenfield airports proposed under NABH Nirmaan 2018, saying the new approach, to be finalised after due consultations with the stakeholders, will help boost investment and unlock the huge potential in the Indian aviation sector.
New transaction structure for future greenfield airports is being proposed with the guiding principles of affordability, sustainability and predictability, said a Civil Aviation ministry statement.
"The ‘Maximum Blended Aeronautical Yield’ (MBAY) in terms of INR per passenger shall be pre-determined by the Concessioning Authority at the beginning of the Concession Period. It shall undergo minor adjustments to account for inflation and certain eventualities over the Concession Period," it said.
The MBAY for greenfield airports for FY 18-19 is proposed to be INR 400 per passenger. The number has been arrived at on the basis of projected cash flow analysis for greenfield airports of different capacities and a review of aeronautical yields at Indian and global airports in the recent past.
The bid parameter, which is proposed to be the ‘Concession Fee per passenger’ payable to the Concessioning Authority in terms of INR per passenger, will differ for each airport in line with its projected traffic, financial returns and risk profile, it further said.
In certain airports, where the proposed MBAY may not be adequate to cover expenses and risks, the concessioning authority may permit bidders to quote a ‘Negative Concession Fee’. The lowest negative fee will be added back to the proposed MBAY to arrive at the revised MBAY for that airport.
"The concession period is proposed to be 40 years. There will be a moratorium on the Concession Fee for a period of three years from the Commercial Operation Date (COD). The base rate of MBAY and the Concession Fee shall be indexed to 50% of inflation," said the statement.
Once every five years, the concessionaire shall propose the base rate of MBAY for the next five years, adjusting for inflation and the difference between the MBAY and the Concessionaire’s actual aeronautical yield in the previous five-year period, it said, adding the Concessionaire shall submit its proposed tariff card as per the MBAY and obtain the Regulator’s approval.
Watch this Zee Business video
TRENDING NOW

Govt mulling restoration of old pension scheme (OPS) for central govt employees? Minister of State for Finance Pankaj Chaudhary says THIS in Lok Sabha

Back-To-Back Upper Circuit! This multibagger infrastructure stock hits upper circuit for 12th straight session

Retail inflation now stable, temporary increases due to demand-supply mismatches: FM Nirmala Sitharaman

D-Street Newsmakers: Tata Power, Subros, Ashok Leyland among 10 stocks that buzzed the most on Monday

Tata Power shares near record high after power generator joins hands with Indian Oil to set up EV charging points
Along with Suresh Prabhu, Jayant Sinha, MoS, Civil Aviation, R N Choubey, Secretary, MoCA and other senior officers of the ministry were also present on the occasion.
07:54 pm