Latest news with #AERA


Time of India
18-07-2025
- Business
- Time of India
Adani Group seeks same pricing for both airports
The Adani Group has asked the Airports Economic Regulatory Authority (AERA) to consider both airports as a single entity with common charges. "CSMIA is an older airport with a depreciated asset base. NMIA is new greenfield airport. The cost structures are high for one and way low for the other. We are working with govt on how to combine these cost structures so that, as a system, flying becomes more affordable," Jeet Adani said. "When both the airports are serving the same catchment, same economy, same city then why should there be differential pricing instead of a lower pricing for all? The AERA Act allows grouping of airports." tnn


Mint
12-07-2025
- Business
- Mint
Passengers, airlines may have to foot the bill as GMR Airports, Adani Airport win more-than-decade-old tariff case
GMR Airports Ltd and Adani Airport Holdings Ltd will be able to earn higher revenues after a tribunal ordered a fresh calculation of the maximum amount they can make from operating the Delhi and Mumbai international terminals, respectively. This, however, would make it more expensive for airlines and passengers to fly into and out of two of India's busiest airports. Airport charges for the Delhi and Mumbai international terminals can rise by about 6% from the current revenue base over the next decade, as per analysts at Kotak Institutional Equities. The higher costs could be equivalent to 3.4% of the sales of IndiGo, India's largest airline, according to the analysts. The carrier reported a topline of ₹80,803 crore for 2024-25. The issue centres around the calculation of the Hypothetical Regulatory Asset Base (HRAB), which governs how much revenue operators can make from an airport. The airport business is effectively a monopoly in most Indian cities, making it critical for regulators to cap the maximum earnings for operators to keep air travel affordable. Higher the HRAB, the more airports can charge in airport fees and tariffs. The Airport Economic Regulatory Authority of India (AERA) had excluded non-aeronautical revenues such as from airport parking, food courts, and advertising from the HRAB calculation at Mumbai and Delhi, only factoring in earnings such as landing fees and passenger charges. However, the Delhi and Mumbai international airports, which were the first to be privatized in 2006, challenged this system in 2012-13 arguing that both aeronautical and non-aeronautical incomes should be considered for calculating HRAB. The case went on for more than a decade. A tribunal has ordered a fresh revenue calculation for Delhi and Mumbai airports, allowing GMR and Adani to include non-aeronautical income like retail, ads, and parking—significantly increasing their earnings potential. Prior to privatization, the ministry of civil aviation (MoCA) had included both aeronautical and non-aeronautical revenues for calculating HRAB under a so-called single-till approach. At airports that were privatized after the Mumbai and Delhi airports, non-aeronautical revenue is given a lower weight in calculating the HRAB. This system is called the hybrid-till approach. In 2023, the Supreme Court of India sided with the Delhi and Mumbai airport operators after the submission of new evidence—a 2011 letter from the civil aviation ministry to AERA stating that the original intention had been to use the single-till approach at Mumbai and Delhi. The top court asked the Telecom Disputes Settlement and Appellate Tribunal to reconsider the calculation of HRAB to include non-aeronautical revenues. TDSAT has been the appellate arbiter for aviation disputes since the Airports Economic Regulatory Authority Appellate Tribunal was merged with it in 2017. What about the lost revenue? The appellate tribunal in a 1 July judgment quashed the airport regulator's tariff decision for the 2009-2014 period, agreeing with GMR Airports's claim that the aviation regulator had under-calculated the investment base (HRAB) using wrong methods. The appellate tribunal also said AERA had ignored a 2011 letter from the civil aviation ministry directing it to recalculate HRBA within 12 weeks. The Airports Authority of India (AAI) had also confirmed in a letter dated 18 June 2018 that tariffs for 2008-09 were based on a single-till model, it said. GMR and Adani did not reply to Mint's queries on the matter. Queries emailed to India's leading airlines went unanswered. 'The recalculation of HRAB using the single-till mechanism will increase the revenue base for DIAL (Delhi International Airport Ltd) and MIAL (Mumbai International Airport Ltd) as non-aeronautical revenues are now included in the tariff calculation," said Aslam Ahmed, partner at Singhania & Co., a law firm. However, TDSAT in its 1 July order did not state anything about lost revenue recovery from the past. 'To claim interest and recovery of lost tariff, a separate suit has to be filed claiming the above reliefs," said Ahmed. The lost revenues could likely be used for the calculation of future HRAB using an accounting method called true-up, said an executive at one of the two airport operators. The executive spoke on condition of anonymity as the matter is sub-judice. As per the calculations of the Kotak analysts, the net present value of the lost revenue at Delhi, including interest, is about ₹17,500 crore, which if allowed, could be recovered from the 80 million annual passengers of Delhi Airport. Kotak Institutional Equities has raised its fair value estimate for GMR Airports from ₹91 to ₹96 per share. The stock ended Friday's trading on NSE down 2.10% at ₹90.36 per share, while the benchmark Nifty 50 index fell 0.81%. 'It remains to be seen whether the regulator will accommodate this tariff increase right now or if it will be postponed to the FY29-34 cycle, since they have already decided on the tariffs for FY24-29," said an analyst at a leading brokerage, speaking on condition of anonymity. A precedent India's airports authority could still appeal the appellate tribunal's decision at the Supreme Court. But the new evidence cited in the Supreme Court ruling supported the two airport operators' interpretation, strengthening their case, lawyers said. 'In the event AERA appeals any future adverse finding, (the civil aviation ministry's) 2011 letter will act as primary documentary evidence affirming the government's intent," said Alay Razvi, managing partner at law firm Accord Juris. 'AERA can question the lack of enforceability of MoCA's (aviation ministry's) letter and say it is not a binding order. But it is highly unlikely as MoCA was the pre-expert body before AERA came into existence," added Ahmed of Singhania & Co. To be sure, TDSAT's 1 July judgement is limited to the First Control Period (2009-2014), when AERA took over from the aviation ministry and set the aeronautical tariffs. However, it paves the way for the Delhi and Mumbai airports to get the same relief in subsequent periods too. 'The judgement by the tribunal establishes precedent value for other tariff control periods and other PPP (public-private partnership) airports with similar disputes," said Razvi. Between 1 July, when TDSAT passed its judgement, and Friday, 11 July, GMR Airports shares gained about 5%, while the Nifty50 declined 1.5% in that period. Adani Airports, which is housed under Adani Enterprises Ltd, is not listed on stock exchanges. GMR Airports's revenue rose 19% year-on-year to ₹10,414 crore in FY25 while its loss narrowed to ₹817 crore from a loss of ₹828 crore in the year before. Adani Airports's topline rose 27% to ₹10,224 crore in FY25 while it reported a pre-tax loss of ₹5 crore against a loss of ₹68 crore in FY24.


Time of India
03-07-2025
- Automotive
- Time of India
Matter to launch one EV bike each year; targets 60 dealerships in FY26
Matter Motor Works , an Ahmedabad-based electric motorcycle startup, plans to launch one new model every year for the next three years as part of its expansion strategy, said Co-founder and COO Arun Pratap Singh, as reported by PTI. Speaking at the launch of the company's first geared electric bike, AERA, Singh said Matter aims to scale operations nationwide, targeting 50–60 dealerships by the end of FY26. Of these, 20 outlets are expected to be in South India, a key region for premium motorcycle demand. 'There are products planned, at least a new launch every year,' Singh said, adding the company remains focused on electric motorcycles , with no immediate plans for scooters. The company began deliveries of the AERA in October 2024, after nearly six years of development. Sales were initially limited to Ahmedabad to gather feedback before rolling out nationally. Matter expects to sell around 10,000 vehicles in FY26, ramping up to 50,000–60,000 units in the following year. Its Ahmedabad plant has a capacity of 10,000 units per month. Strategy to resolve supply chain issue The company has so far raised $80 million and plans to secure an additional $200 million in the next couple of years, ahead of a potential IPO in 3–4 years. On supply chain concerns, Singh acknowledged challenges around sourcing rare earth magnets and said the company is working with Chinese suppliers while also exploring non-Chinese alternatives that use magnets without rare earth materials. 'We're actively looking at alternatives to avoid future supply disruptions,' Singh said. Matter's expansion and product roadmap signals its ambition to emerge as a key player in India's growing electric two-wheeler market , with a clear focus on technology, scale, and regional reach.
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Business Standard
03-07-2025
- Automotive
- Business Standard
Matter Motor plans to launch one electric bike annually over next 3 years
The Ahmedabad-based company plans to open up to 60 dealerships across the country this financial year, with the majority of them in South India Press Trust of India Electric motorcycle maker Matter Motor Works plans to launch one new model every year in the next three years as it looks to accelerate volume growth, its Co-founder and Group COO Arun Pratap Singh said on Thursday. The Ahmedabad-based company, which on Thursday launched its geared electric bike AERA in the Delhi market, plans to open up to 60 dealerships across the country this fiscal, with the majority of them in South India, Singh told PTI here. "There are products planned, at least a new launch every year. So that's what we can see for the next three years," he said when asked about the company's product pipeline. He said the company is focusing on electric motorcycles only at present and is not looking at electric scooters "as of now". On the company's first model AERA, he said, "We took almost six years to develop the vehicle. We started deliveries in October last year." The company had confined sales in the Ahmedabad market for the first six months to study consumer feedback and made "small tinkering", he noted. "Now we are moving across India to start deliveries," Singh said. On sales network expansion, he said, "We are ramping up. We are planning to set up almost 30 dealerships by August, and we should be closing almost 50 to 60 dealerships by this financial year end." He further said, "From the distribution side, we have a larger presence coming up in South India. Out of the 30 dealerships (by August), 20 dealerships will be coming in the South." The segment in which the company is present is more popular in South India, he noted. In terms of sales, Singh said, "We intend to close around 10,000 vehicles in the first year. Second year, it should be around 50,000 to 60,000 vehicles and beyond that, it is difficult to project." The company's manufacturing unit in Ahmedabad has a capacity to roll out 10,000 units a month. When asked about investments, he said the company is utilising funds of up to $80 million that it has already raised. Singh reiterated that Matter is looking to raise a further $200 million in the next couple of years before it looks for an initial public offering in three to four years' time. When asked about supply constraints of rare earth magnets, he said that currently, the company is in talks with its partners in China to resolve the issue. "But parallelly, we are also looking at alternatives so that we do not get into this kind of situation next time," Singh said. Stating that there are companies outside the Chinese region which have permanent magnets without rare earth minerals, he said, "We have started talking to them and the results will come out soon. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Time of India
03-07-2025
- Automotive
- Time of India
Matter Motor Works plans to launch one electric bike annually over next 3 years
Matter Motor Works is set to launch a new electric motorcycle model annually for the next three years, aiming to boost volume growth. Following the Delhi launch of its AERA electric bike, the company plans to establish up to 60 dealerships nationwide this fiscal year, with a strong focus on South India. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Renewables Tired of too many ads? Remove Ads Electric motorcycle maker Matter Motor Works plans to launch one new model every year in the next three years as it looks to accelerate volume growth, its Co-founder and Group COO Arun Pratap Singh said on Ahmedabad-based company, which on Thursday launched its geared electric bike AERA in the Delhi market, plans to open up to 60 dealerships across the country this fiscal, with the majority of them in South India, Singh told PTI here."There are products planned, at least a new launch every year. So that's what we can see for the next three years," he said when asked about the company's product said the company is focusing on electric motorcycles only at present and is not looking at electric scooters "as of now".On the company's first model AERA, he said, "We took almost six years to develop the vehicle. We started deliveries in October last year."The company had confined sales in the Ahmedabad market for the first six months to study consumer feedback and made "small tinkering", he noted."Now we are moving across India to start deliveries," Singh sales network expansion, he said, "We are ramping up. We are planning to set up almost 30 dealerships by August, and we should be closing almost 50 to 60 dealerships by this financial year end."He further said, "From the distribution side, we have a larger presence coming up in South India. Out of the 30 dealerships (by August), 20 dealerships will be coming in the South."The segment in which the company is present is more popular in South India, he terms of sales, Singh said, "We intend to close around 10,000 vehicles in the first year. Second year, it should be around 50,000 to 60,000 vehicles and beyond that, it is difficult to project."The company's manufacturing unit in Ahmedabad has a capacity to roll out 10,000 units a asked about investments, he said the company is utilising funds of up to USD 80 million that it has already reiterated that Matter is looking to raise a further USD 200 million in the next couple of years before it looks for an initial public offering in three to four years' asked about supply constraints of rare earth magnets, he said that currently, the company is in talks with its partners in China to resolve the issue."But parallelly, we are also looking at alternatives so that we do not get into this kind of situation next time," Singh that there are companies outside the Chinese region which have permanent magnets without rare earth minerals, he said, "We have started talking to them and the results will come out soon."