New Delhi, Aug. 29: The cabinet today approved the changes recommended for the setting up of an airport economic regulatory authority.

A parliamentary committee had suggested that the regulator should be given the authority to decide aeronautical and non-aeronautical service tariffs as well as control fuel supply infrastructure at airports.

“The amendments will enable the setting up of the airports economic regulatory authority,” science and technology minister Kapil Sibal said after the cabinet meeting today.

“The body will fix, review and approve tariff structure for aeronautical services and monitor pre-set performance standards at airports,” he said.

The bill provides for the regulatory authority to have a chairperson and two members.

The amended bill would be tabled in the next session of Parliament. beginning October 17.

At present, the Airports Authority of India (AAI) plays the dual role of an airport operator and regulator.

The need for an independent regulator, in the lines of the Securities and Exchange Board of India and the Telecom Regulatory Authority of India, was felt as major airports were being privatised.

Initially, the plan was to set up a regulator who would combine the role of the directorate general of civil aviation and an airport regulator, just as the Federal Aviation Authority in the US.

The Prime Minister’s Office was believed to have supported such a move.

However, the civil aviation ministry did not agree to the formation of such a powerful independent regulator and, instead, settled for a regulatory body.