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NATIONAL AIRPORTS AUTHORITY ACT, 1985

64 of 1985

7th December, 1985

An Act to provide for the establishment of an Authority for the management of aerodromes and civil enclaves whereat domestic air transport services are operated or are intended to be operated and of all communication stations and for matters connected therewith. Be it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:-

Prefatory Note-Statement of Objects and Reasons.-The Directorate-General of Civil Aviation (DGCA), is responsible for the regulation and control of civil aviation activity in the country. The main functions of this organisation are:- (i) Construction and maintenance of domestic airports, including runways, taxiways, aprons and terminal buildings; (ii) Procurement, installation and maintenance of navigational aids and provision of tele-communications, navigational and air traffic control services; (iii) Regulatory functions such as licensing and training, air-worthiness and air safety control, ground safety and economic and regulatory functions relating to air transport services. 2. As a result of an all-round increase in the above activities and the introduction of sophisticated aircraft, the infra-structural facilities at aerodromes have had to be constantly improved. The functioning of the DGCA has been found difficult due to its having to have its constructions executed by the CPWD, its purchases routed through the DGS and D and its personnel recruited through the UPSC. There had therefore been delays in the above activities of the DGCA. 3. In order to study in depth the possibility of improving efficiency by introducing increased flexibility and autonomy for the development of domestic airports and the provision of air traffic services, the Ministry of Tourism and Civil Aviation set up an Experts Committee under the Chairmanship of the Director-General Civil Aviation. The Committee recommended setting up of a statutory authority, which would have the necessary flexibility and autonomy for taking up development activities in the field of civil aviation. 4. The recommendations of this Committee have been examined in depth and it is proposed to constitute a statutory authority for the development, construction and management of domestic airports and for the provision of navigational and tele-communication facilities and air traffic control services at airports located in different parts of the country. 5. For the remaining four-year period of the Seventh Five-Year Plan, a sum of Rs. 311.26 crores has been proposed for meeting the capital expenditure on the developmental activities at the various airports. This outlay can be spent more effectively with the setting up of the Authority. Projections with regard to estimated revenue, receipts and expenditure and the internal resources likely to be generated by the proposed Authority reveal that the creation of an autonomous domestic airports Authority would not cause any additional financial burden or liability on the Central Government and would, in fact, have definite functional advantages. 6. It is accordingly proposed to constitute a statutory authority for the development, construction and maintenance of all the domestic airports and civil enclaves in the country and also for provision of air traffic, tele-communication and navigational services. The Act will apply in relation to all aerodromes, civil enclaves and aeronautical communication stations, other than aerodromes to which the International Airports Authority Act, 1971, applies, and aerodromes and airfields belonging to or subject to the control of any armed force of the Union and will include premises necessary for carrying on by the said Authority, of the functions conferred on it by the Act. 7. The Bill seeks to achieve the above objects. 8. The Notes on clauses appended to the Bill explain the more important provisions of the Bill.

SECTION 01: SHORT TITLE, COMMENCEMENT AND APPLICATION

(1) This Act may be called the National Airports Authority Act, 1985.

(2) It shall come into force on such date as the Central Government may, by notification in the official Gazette, appoint.

(3) It applies to-

(a) all aerodromes whereat domestic air transport services are operated or are intended to be operated, other than-

(i) aerodromes to which the International Airports Authority Act, 1971 (43 of 1971), applies; and

(ii) aerodromes and airfields belonging to, or subject to the control of, any armed force of the Union;

(b) all civil enclaves; and

SECTION 02: DEFINITIONS

-In this Act, unless the context otherwise requires,-

(a) "air traffic service" includes flight information service, alerting service, air traffic advisory service, air traffic control service, area control service, approach control service and aerodrome control service;

(b) "air transport service" means any service, for any kind of remuneration, whatsoever, for the transport by air of persons, mail or any other thing, animate or inanimate, whether such service relates to a single Height or series of flights;

(d) "civil enclave" means the area, if any, allotted at an aerodrome belonging to any armed force of the Union, for use by persons availing of any air transport services from such aerodrome or for the handling of baggage or cargo by such service, and includes land comprising of any building and structure on, such area ;

(e) "heliport" means an area, either at ground level or elevated on a structure, used or intended to be used for the landing and take off of helicopters and includes any area for parking helicopters and all buildings and structures thereon or appertaining thereto;

(f) "member" means a member of the Authority and includes the Chairman, but does not include, for the purposes of Sections 4-,5-,6-and7-, an ex officio member referred to in clause (b) of sub-section (3) of Section 3-;

(g) "prescribed" means prescribed by rules made under this Act;

(h) "regulations" means regulations made under this Act; and

(i) words and expressions used herein and not defined but defined in the Aircraft Act, 1934 (22 of 1934)-, shall have the meanings, respectively, assigned to them in that Act.

SECTION 03: CONSTITUTION AND INCORPORATION OF THE AUTHORITY

-(1) With effect from the commencement of this Act, the Central Government shall constitute an authority to be called the National Airports Authority.

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property both movable and immovable, and to contract and shall by the said name sue and be sued.

(3) The Authority shall consist of-

(a) a Chairman to be appointed by the Central Government;

(b) the Director-General of Civil Aviation, ex officio, and

(4) The Chairman shall be a whole-time member and other members referred to in clause (c) of sub-section (3) may be appointed as whole-time or part-time members as the Central Government may think fit.

(5) The Chairman and the members referred to in clause (c) of subsection (3) shall be chosen from among persons who have special knowledge and experience in air transport or other transport services, industry, commercial or financial matters or administration and from among persons who are capable of representing organisations of workers and consumers.

SECTION 04: DISQUALIFICATION FOR OFFICE OF MEMBER

-A person shall be disqualified for being appointed as a member if he-

(a) has been convicted and sentenced to imprisonment for an offence, which, in the opinion of the Central Government, involves moral turpitude, or

(b) is an undischarged insolvent; or

(d) has been removed or dismissed from the service of the Government or a body corporate owned or controlled by the Government ; or

(e) has in the opinion of the Central Government such financial or other interest in the Authority as is likely to affect prejudicially the discharge by him of his functions as a member.

SECTION 05: TERM OF OFFICE AND CONDITIONS OF SERVICE OF MEMBERS

(1) Subject to the provisions of Section 6-, every member (other than the ex officio member) shall hold office for a period of three years from the date on which he assumes office: Provided that the Central Government may-

(a) terminate the appointment of any whole-time member, who is not a servant

of the Government, after giving him notice for a period of not less than three

months or in lieu thereof, on payment of an amount equal to his salary and allowances, if any, for a period of three months,

(b) terminate the appointment of any part-time member who is not a servant of the Government after giving him notice for such period as may be prescribed; and

(2) The other conditions of service of the members shall be such as may be prescribed.

(3) Any member may resign his office by giving notice in writing for such period as may be prescribed, to the Central Government and, on such resignation being notified in the official Gazette by that Government, such member shall be deemed to have vacated his office.

(4) A casual vacancy caused by the resignation of a member under subsection (3) or otherwise may be filled by fresh appointment and the person so appointed shall hold office for the remaining period for which the member in whose place he is appointed would have held office.

SECTION 06: VACATION OF OFFICE OF MEMBER

-The Central Government shall remove a member if he-

(a) becomes subject to any of the disqualifications mentioned in Section 4-: Provided that no member shall be removed on the ground that he has become subject to the disqualification mentioned in clause (e) of that section, unless he has been given a reasonable opportunity of being heard in the matter; or

(b) refuses to act or becomes incapable of acting; or

(c) is, without obtaining leave of absence from the Authority, absent from three consecutive meetings of the Authority; or

(d) in the opinion of the Central Government, has so abused his position as to render his continuance in office detrimental to the public interest: Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter.

SECTION 07: ELIGIBILITY OF MEMBER FOR REAPPOINTMENT

-Any person ceasing to be a member shall, unless disqualified under Section 4-, be eligible for reappointment as such.

SECTION 08: MEETINGS

(1) The Authority shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of the business at its meetings (including the quorum at such meetings) as may be provided by regulations.

(2) The Chairman, or, if for any reason he is unable to attend any meeting of the Authority any other member chosen by the members present at the meeting shall preside at the meeting.

(3) All questions which come up before any meeting of the Authority shall be decided by a majority of the votes of the members present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have and exercise a second or casting vote.

SECTION 09: VACANCIES, ETC., NOT TO INVALIDATE PROCEEDINGS OF THE AUTHORITY

-No act or proceeding of the Authority shall be invalid merely by reason of-

(a) any vacancy in, or any defect in the constitution of, the Authority; or

(b) any defect in the appointment of a person acting as a member of the Authority; or

SECTION 10: APPOINTMENT OF OFFICERS AND OTHER EMPLOYEES OF THE AUTHORITY

(1) For the purpose of enabling it efficiently to discharge its functions under this Act, the Authority shall, subject to the provisions of Section 13-and to such rules as may be made in this behalf, appoint (whether on deputation or otherwise) such number of officers and other employees as it may consider necessary: Provided that the appointment of such category of officers, as may be specified after consultation with the Chairman in such rules, shall be subject to the approval of the Central Government.

(2) Subject to the provisions of Section 13-, every officer or other employee appointed by the Authority shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations.

SECTION 11: AUTHORITY TO ACT ON BUSINESS PRINCIPLES

-In the discharge of its functions under this Act, the Authority shall act, so far as may be, on business principles.

SECTION 12: FUNCTIONS OF THE AUTHORITY

(1) Subject to the rules, if any, made by the Central Government in this behalf, it shall be the function of the Authority to manage the aerodromes, the civil enclaves and the aeronautical communication stations efficiently.

(2) It shall be the duty of the Authority to provide air traffic service and air transport service at any aerodrome and civil enclaves.

(3) Without prejudice to the generality of the provisions contained in subsections (1) and (2), the Authority may-

(a) plan, develop, construct and maintain runways, taxiways, aprons and terminals and ancillary buildings at the aerodromes and civil enclaves;

(b) plant, procure, install and maintain navigational aids, communication

equipment, beacons and ground aids at the aerodromes and at such locations as may be considered necessary for safe navigation and operation of aircraft;

(d) establish schools or institutions or centres for the training of its officers and employees in regard to any matter connected with the purposes of this Act;

(e) construct residential buildings for its employees;

(f) establish and maintain hotels, restaurants and restrooms at or near the aerodromes;

(g) establish warehouses and cargo complexes at the aerodromes for the storage or processing of goods;

(h) arrange for postal, money exchange, insurance and telephone facilities for the use of passengers and other persons at the aerodromes and civil enclaves;

(i) make appropriate arrangements for watch and ward at the aerodromes and civil enclaves ;

(j) regulate and control the plying of vehicles, and the entry and exit of

passengers and visitors, in the aerodromes and civil enclaves with due regard to the security and protocol functions of the Government of India;

(k) develop and provide consultancy services in India and abroad in relation to

planning and development of airports, air navigation services, ground aids and safety services or any facilities thereat;

(l) establish and manage heliports;

(m) provide such transport facility as are, in the opinion of the Authority, necessary to the passengers travelling by air;

(n) form one or more companies under the Companies Act, 1956 (1 of 1956)-or

under any other law relating to companies to further the efficient discharge of the functions imposed on it by this Act ;

(o) take all such steps as may be necessary or convenient for, or may be

incidental to, the exercise of any power or the discharge of any function conferred or imposed on it by this Act; and

(p) perform any other function considered necessary or desirable by the

Central Government for ensuring the safe and efficient operation of aircraft to, from and across the air space of India.

(4) Notwithstanding anything contained in the International Airports Authority Act, 1971 (43 of 1971), or sub-section (3) of Section 1or any other provision of this Act, the Authority shall, if the Central Government so directs by notification in the official Gazette, discharge the function of providing air navigation services referred to in the proviso to sub-section (2) of Section 16 of the International Airports Authority Act, 1971 at the airports to which that Act applies.

(5) In the discharge of its functions under this section, the Authority shall have due regard to the development of air transport service and to the efficiency, economy and safety of such service.

(6) Nothing contained in this section shall be construed as-

(a) imposing an obligation on the Authority to discharge any function or duty

[other than the function mentioned in subsection (4) and the duties arising therefrom] with respect to any aerodrome to which this Act does not apply ;

(b) authorising the disregard by the Authority of any law for the time being in force; or

(c) authorising any person to institute any proceeding in respect of duty or liability to which the Authority or its officers or other employees would not otherwise be subject.

SECTION 13: TRANSFER OF ASSETS AND LIABILITIES OF THE CENTRAL GOVERNMENT TO THE AUTHORITY

(1) As from such date as the Central Government may appoint by notification in the Official Gazette-

(a) all properties and other assets including the equipment and navigational and ground aids relating to air traffic services and vested in the Central Government for the purposes of any aerodrome, civil enclave and aeronautical

communication station and administered by the Director-General of Civil Aviation immediately before such date shall vest in the Authority;

(b) all properties and other assets vested in the Central Government for the

purposes of Civil Aviation Training Centre, Allahabad and the Fire Services

Training School, Calcutta and administered by the Director-General of Civil Aviation immediately before such date shall vest in the Authority;

(c) all residential buildings owned by the Director-General of Civil Aviation immediately before such date shall vest in the Authority;

(d) all debts, obligations and liabilities incurred, all contracts entered into, and all matters and things engaged to be done by, with, or for the Central Government immediately before such date for or in connection with the purposes of any aerodrome, civil enclave, aeronautical communication station, the Civil Aviation Training centre and the Fire Services Training School shall be deemed to have been incurred, entered into and engaged to be done by, with, or for the Authority ;

(e) all non-recurring expenditure incurred by the Central Government for or in connection with the purposes of any aerodrome, civil enclave, aeronautical communication station. Civil Aviation Training Centre, Fire Services Training School up to such date and declared to be capital expenditure by the Central Government shall subject to such terms and conditions as may be prescribed

by the Central Government, be treated as capital provided by the Central Government to the Authority;

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