RAS question
AERA regulates:
Correct answer: (D) Tariffs at major airports.
AERA regulates tariffs for aeronautical services at major airports in India.
Explanation
AERA, the Airports Economic Regulatory Authority, was established under the AERA Act, 2008 to determine tariffs for aeronautical services provided at major airports. The PIB release states that AERA determines aeronautical tariffs for major airports after stakeholder consultation and reviews or revises them every five years. AERA is not a general transport-price regulator, nor does it set passenger airfares. Its role is tied to airport charges for aeronautical services, balancing fair tariffs with a reasonable rate of return for airport operators and developers. AERA regulates tariffs at major airports.
Why the other options are wrong
- (A) Highway tolls are outside AERA's airport-specific mandate and are managed by NHAI, not by the Airports Economic Regulatory Authority.
- (B) Railway fares are not aeronautical-service tariffs at major airports and are decided within the railway system, including the Railway Board.
- (C) Airline ticket prices are market-determined passenger fares, whereas AERA regulates airport tariffs for aeronautical services, not retail ticket pricing.
Concept
Regulatory bodies in the Indian economy are tied to specific sectors and mandates. RAS often covers regulators like AERA because they define how infrastructure markets are priced and supervised.