New Delhi, July 16 -- India's biggest private-sector airport operators are pushing back against a regulatory proposal that would delay when they can start charging passengers for new terminals and runways, warning that the change could squeeze cash flows and complicate financing for billions of rupees in planned expansion.

GMR Airports, Adani Airport Holdings and Fairfax-backed Bangalore International Airport are among the operators objecting to the Airports Economic Regulatory Authority of India's (Aera) plan to link passenger fee increases to the actual completion of infrastructure projects, rather than allowing cost recovery once tariffs are approved, according to minutes of a 6 July stakeholder meeting reviewed by Mint.

The dispute,...