GMR Infrastructure directed to adopt Hybrid Till with 30% cross subsidization for GHIAL

On 11 June 2015

GMR Infrastructure announced that the Ministry of Civil Aviation (MoCA) vide its order dated 11 June 2015 has directed Airport Economic Regulatory Authority (AERA) under section 42(2) of AERA Act, 2008 to adopt a Hybrid Till with 30% cross subsidization for the tariff determination of GMR Hyderabad International Airport (GHIAL), a subsidiary of GMR Infrastructure, The RGI Airport Shamshabad (Hyderabad) has been built and operated by GHIAL.

AERA had passed an order on 24 February 2014 (Order Number 38/2013-14) determining the tariff of GHIAL considering a Single Till methodology of tariff determination. Single Till being not in line with the concession agreement, GHIAL had appealed against this order of AERA by filing a writ petition (No. 6487/2014) in the Hon'ble High Court of Andhra Pradesh. After various hearings, the Hon'ble Court had directed MoCA to pass an order on the appropriate Till methodology to be used for tariff determination of GHIAL.

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