Group of ministers discusses draft aviation policy

The draft aviation policy that was rolled out last October contains several provisions like 2 percent levy on all air tickets to fund regional connectivity and tax sops, among others, which would have financial implications when the policy comes for implementation.
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Feb 18, 2016, 06.59 PM | Source: PTI

Group of ministers discusses draft aviation policy

The draft aviation policy that was rolled out last October contains several provisions like 2 percent levy on all air tickets to fund regional connectivity and tax sops, among others, which would have financial implications when the policy comes for implementation.

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Group of ministers discusses draft aviation policy

The draft aviation policy that was rolled out last October contains several provisions like 2 percent levy on all air tickets to fund regional connectivity and tax sops, among others, which would have financial implications when the policy comes for implementation.

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Group of ministers discusses draft aviation policy
A group of ministers today discussed the draft aviation policy, which is in the advanced stage of finalisation, at a meeting headed by Home Minister Rajnath Singh here ahead of the presentation of the Union Budget later this month.

The draft aviation policy that was rolled out last October contains several provisions like 2 percent levy on all air tickets to fund regional connectivity and tax sops, among others, which would have financial implications when the policy comes for implementation.

The meeting, chaired by Home Minister Rajnath Singh, was attended by Civil Aviation Minister Ashok Gajapathi Raju and his deputy Mahesh Sharma, Finance Minister Arun Jaitley, Defence Minister Manohar Parrikar, Railway Minister Suresh Prabhu, Power Minister Piyush Goyal and Skill Development Minister Rajiv Pratap Rudy besides Civil Aviation Secretary R N Choubey, official sources said.

"It was quite a good meeting. Most of the issues in the draft civil aviation policy were discussed during the meeting," sources privy to the meeting said without disclosing details.

Significantly, the meeting comes a day after domestic airlines body Federation of Indian Airlines (FIA) sought Prime Minister's Office (PMO) intervention in incorporating some of its concerns while finalising the draft civil aviation policy.

This was the first ministerial-level consultation on the draft policy document after its rollout as so far discussions were held between the Ministry of Civil Aviation and the stakeholders in the sector like airlines, airport operators, among others.

The draft policy proposes various tax sops and over 50 percent FDI for Indian carriers besides setting up of no-frills airports and providing viability gap funding for airlines for regional connectivity, capping of airfares at Rs 2,500 for one-hour flight under regional connectivity scheme for places that are un-served currently as well as auctioning of bilateral rights.

At present FDI limit in aviation is 49 percent.

Under open skies policy, overseas airlines can operate unlimited number of flights into and out of India.

The draft policy would also decide the fate of the decade-long international flying norm, popularly known as 5/20 rule, for domestic carriers.

The rule allows only those Indian airlines which have a 20-aircraft fleet and have operated in the domestic sector for five years to fly abroad.

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Group of ministers discusses draft aviation policy

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