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May 5, 2016

Indian Government approves construction of new Greenfield airports

The Government of India has approved the construction of 14 Greenfield airports in the country.

By Lopamudra Roy

The Government of India has approved the construction of 14 Greenfield airports in the country.

The airports will be built in Karnataka, Kerala, Goa, Sikkim, Maharashtra, Uttar Pradesh, Madhya Pradesh, Puducherry and Gujarat.

In addition, the government has detailed route dispersal guidelines (RDG) for air transport services based on the necessity for these services in different regions.

According to the 2008 Greenfield Airport Policy, airport developers will oversee the construction and financing of a Greenfield airports.

"The government has detailed route dispersal guidelines (RDG) for air transport services based on the necessity for these services in different regions."

The Indian Government has also established the Airports Economic Regulatory Authority of India (AERA) to decide on charges with respect to aeronautical services delivered across the country.

Charges are based on various aspects of the airport, such as operational costs, investment on infrastructure and service enhancements.

Airlines have levied fuel charges under the 1937 provisions of Rule 135 of Aircraft Rules.

According to the rules, airlines engaged in scheduled air services are required to set up tariffs covering relevant factors, including the characteristic of services, reasonable profit and cost of operation.

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