Categories: Business

FM announce major structural reform for civil aviation sector


Reform for aviation sector

new Delhi. Several reforms have been announced today for the civil aviation sector which came to the ground due to the Corona crisis. Finance Minister Nirmala Sitharaman has announced these reforms in the fourth part of the Self-Reliant India Package. This announcement is in three parts, in the first there is talk of better management of the airspace, while in the second part, announcements have been made to increase and improve the number of airports. The third part mentions the steps being taken to make the country a center for maintenance repair and overhauling of airplanes.

According to the Finance Minister, only 60 per cent of the total airspace of the country is open to the civil aviation sector. He announced that regulations regarding Indian airspace would be relaxed so that flights could be operated more efficiently. These reforms are expected to benefit the airlines by Rs 1000 crore annually. According to the Finance Minister, the entire area will be put to better use due to the relaxation in the airspace and the time and fuel expenses of the airlines will be reduced.

At the same time, the government plans to increase the number of airports to be built and operated with the help of Public Private Partnership in the country. According to the Finance Minister, under this scheme 6 airports are being prepared in the first round, out of which bids have been given for 3. At the same time, 6 more airports have been identified for the second round. The Finance Minister informed that under the PPP model, 6 airports will also be constructed in the third round under the plan to build the airport. That is, there are plans to build 12 new airports with the help of private companies. The Finance Minister informed that annual revenue from the first round of 6 airports will be Rs 1000 crore. At the same time, the airport authority will also get a down payment of Rs 2300 crore.

At the same time, the Finance Minister has announced to change the tax rates for the country's MRO (Maintenance, repair overhaul) sector. Simultaneously, the synergy between the defense industry and the civil aviation MRO sector will be increased, leading to a business boom. According to the Finance Minister, the repair and maintenance industry of aircraft parts has increased from Rs 800 crore to Rs 2000 crore in the last 3 years.

This post was published on May 16, 2020 7:39 pm

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