Praful to make presentation to Cabinet

New Delhi: The Minister for Civil Aviation, Mr Praful Patel, is to make a detailed presentation on the issues facing the domestic aviation sector at the next meeting of the Union Cabinet slated for Thursday. This follows the sector making an estimated loss of about Rs 10,000 crore or $2 billion in 2008-09.
The decision on the presentation was firmed up at a meeting between the Prime Minister, Dr Manmohan Singh, and Mr Patel here on Saturday. Sources indicated that the Ministry of Civil Aviation is likely to propose that a Group of Minister (GoM) be constituted to look into the various problems affecting the profitability of domestic airlines.
The industry wants the Government to take steps to reduce the burden of the high price of aviation turbine fuel as the base price of ATF is higher in India than that in other parts of the world. “If the Government can provide a subsidy of more than Rs 1,00,000 crore for petro-products then why not give relief of about Rs 5,000 crore, which is the amount that the States collect by way of taxes and other levies on ATF?” a senior official asked.
The industry estimates that if ATF were to attract a uniform sales tax rate throughout the country, then in 2008-09, it would have provided a relief of about Rs 3,200 crore to the industry.
09/08/09 BusinessLine

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Categories: Indian Aviation- In General Aug 2009, NACIL Aug 2009