MINISTER OF CIVIL AVIATION ( SHRI AJIT SINGH )
(a) and (b): To have a sustainable orderly growth of the
aviation sector, the Ministry has felt the need to spell out
a long term Civil Aviation Policy addressing various issues
related to the sector. Accordingly on 22.12.2011, a
Committee has been constituted under the Chairmanship of
Secretary, Civil Aviation to formulate a Civil Aviation
Policy to address the long term issues of the sector and
provide a road map for development. Government has
identified focus areas and a consultation paper has been
placed on the website of the Ministry
(www.civilaviation.nic.in) inviting comments from all
stakeholders. Comments received from various organizations
are under examination.
(c) to (f): The issue of allowing FDI by foreign airlines in
domestic carriers is under consideration of Department of
Industrial Policy and Promotion (DIPP).
(g): The Government has taken several measures to revive the
aviation industry and ensure long term viability of the
sector.
(1) A Working Group was constituted under the Chairmanship
of Secretary, Civil Aviation with Finance Secretary;
Secretary, Financial Services; Secretary, M/o Petroleum &
Natural Gas; DGFT and Joint Secretary, Civil Aviation to
discuss the factors causing stress in civil aviation and to
suggest solutions to the same. Based on its recommendations
following step have been taken by government.
(i) The issue of rationalization of VAT on ATF, has been
taken up with the State Govts.
(ii) Director General of Foreign Trade has allowed direct
import of ATF by airlines on actual user basis.
(iii) The Ministry has undertaken a study of ATF pricing and
fiscal structure through experts. The report has been
submitted to Ministry of Civil Aviation.
(2) ECB upto $ USD 1 billion has been permitted for the
airlines to meet their working capital requirement.
For establishment and renovation of airports in the
country, the following Sector specific measures have been
taken by the Government:
(i) Easier FDI Policy for airports has been put in place
vide which 100% FDI, through automatic route, has been
permitted in Greenfield airports
(ii) A new policy for greenfield airports has been
envisaged.
(iii) To create world class airport infrastructure,
upgradation/ modernization of a number of metro and
non-metro airports have been undertaken by Airports
Authority of India (AAI) as well as through Joint Venture
Companies.
(iv) The infrastructure at the airports, Air Traffic
Control and Navigation is constantly upgraded to meet
the future demand of the airlines.
