Finmin to take up ATF rationalisation with state govts
Published on Wed, Aug 12, 2009 at 12:22 | Source : CNBC-TV18
Updated at Wed, Aug 12, 2009 at 17:28
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Finmin to take up ATF rationalisation with state govts
Airlines in India have identified two problems- high prices of aviation turbine fuel (ATF), and airport charges, which they claim are the highest in the world. But the aviation minister says only one of these is really a problem. CNBC-TV18’s Swati khandelwal jain reports.
Airlines in India have identified two problems that are affecting them the most - high prices of aviation turbine fuel (ATF), and airport charges, which they claim are the highest in the world. But the aviation minister says that only one of these is really a problem. CNBC-TV18's Swati Khandelwal reports.
Praful Patel, Civil Aviation Minister said that airport chares are not outrageous.
He is in no mood to entertain requests to reduce airport charges. His message adds some weight to a report put out by airport developers GVK and GMR which shows that Indian airport charges are among the lowest in the world, contrary to claims by airlines. However, he agrees that quick action is essential on the ATF front. High sales tax on ATF is a big burden on airlines.
Patel says he has discussed the ATF issue with the Prime Minister, who agrees that this issue needs to be addressed post haste. Patel will approach the cabinet for help in this area later this week, asking for a quick solution to the problem.
Sources say the finance ministry is likely to take up ATF rationalization with state governments soon. The State governments are opposed to giving ATF 'declared goods' status, as it will mean huge revenue losses. So the mechanism arrived upon will have to meet the sector's demands and the state government's demands half-way.
