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 airports, 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
airport and civil enclaves.
(3) Without prejudice to the generality of the provisions contained in sub-sections (1) and (2), the
Authority may—
(a) plan, develop, construct and maintain runways, taxiways, aprons and terminals and ancillary
buildings at the airports and civil enclaves;
1
[(aa) establish airports, or assist in the establishment of private airports, by rendering such
technical, financial or other assistance which the Central Government may consider necessary for
such purpose;]
(b) plan, procure, instal and maintain navigational aids, communication equipment, beacons and
ground aids at the airports and at such locations as may be considered necessary for safe navigation
and operation of aircrafts;
(c) provide air safety services and search and rescue, facilities in co-ordination with other
agencies;
1. Ins. by Act of 43 of 2003, s. 5 (w.e.f. 1-7-2004).
7
(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 airports;
(g) establish warehouses and cargo complexes at the airports 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 airports and civil enclaves;
(i) make appropriate arrangements for watch and ward at the airports and civil enclaves;
(j) regulate and control the plying of vehicles, and the entry and exit of passengers and visitors, in
the airports and civil enclaves with due regard to the security and protocol functions of the
Government of India;
(k) develop and provide consultancy, construction or management services, and undertake
operations in India and abroad in relation to airports, air-navigation services, ground aids and safety
services or any facilities thereat;
(l) establish and manage heliports and airstrips;
(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;
(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;
(q) establish training institutes and workshops;
(r) any other activity at the airports and the civil enclaves in the best commercial interests of the
Authority including cargo handling, setting up of joint ventures for the discharge of any function
assigned to the Authority.
(4) 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.
(5) Nothing contained in this section shall be construed as—
(a) authorising the disregard by the Authority of any law for the time being in force; or
(b) 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.
1
[12A. Lease by the Authority.—(1) Notwithstanding anything contained in this Act, the Authority
may, in the public interest or in the interest of better management of airports, make a lease of the premises
of an airport (including buildings and structures thereon and appertaining thereto) to carry out some of its
functions under section 12 as the Authority may deem fit:
Provided that such lease shall not affect the functions of the Authority under section 12 which relates
to air traffic service or watch and ward at airports and civil enclaves.
(2) No lease under sub-section (1) shall be made without the previous approval of the Central
Government.
(3) Any money, payable by the lessee in terms of the lease made under sub-section (1), shall form
part of the fund of the Authority and shall be credited thereto as if such money is the receipt of the
Authority for all purposes of section 24.
1. Ins. by Act of 43 of 2003, s. 6 (w.e.f. 1-7-2004).
8
(4) The lessee, who has been assigned any function of the Authority under sub-section (1) shall have
all the powers of the Authority necessary for the performance of such function in terms of the lease.]