NITI Aayog Panel Proposes Three-Category Airport Tariff Framework To Replace Item-Wise Airport Charging System: Report

A NITI Aayog panel led by Rajiv Gauba proposes replacing India's item-wise airport tariff system with a three-category framework covering landing and parking charges, User Development Fee (UDF), and other airport service charges.

The plan aims to give airport operators greater pricing flexibility, including route-specific incentives, seasonal discounts, or promotional tariffs, while reducing regulatory complexity.

The panel recommends allowing airport operators to self-certify commercial modifications in terminals, such as retail outlets and lounges, instead of seeking approval from the Bureau of Civil Aviation Security (BCAS).

It proposes automating height no-objection certificates (NOCs) for buildings near airports with validity up to 12 years to speed up infrastructure projects.

Other recommendations include extending Foreign Aircrew Temporary Authorisation (FATA) validity to two years and introducing auto-certification for low-risk drones up to 30 kg.