PM denies immediate relief to aviation sector

New Delhi: Prime Minister Manmohan Singh refused to announce any immediate relief to the airline industry that is hit by high aviation fuel cost, but assured the industry leaders that he would take up the matter with state finance ministers on June 16.
Singh said this to Civil Aviation Minister Praful Patel and representatives of major airlines who met him Wednesday seeking relief measures for the industry.
"The prime minister told us that the government would take a view after it is discussed by the State Finance Ministers' Empowered Group," Patel told reporters after the meeting.
The prime minister told the delegation that the issue of high taxes on aviation fuel was a matter concerning states and the central government could not take a decision without taking the states into confidence.
"The government has its own constraints," added Patel.
He said the next round of meeting would take place after getting the feedback of the state finance ministers.
When the average fare was Rs 6,050 in 2004, the fuel cost was Rs 21,000 per kilolitre. However, the cost of fuel now is Rs 70,000 per kl, but the average fare went down to Rs 3,950, Patel said.
11/06/08 Indo Asian News Service/NDTV.com

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Categories: Indian Aviation- In General Jun 2008