Ahmedabad: Air traffic in Gujarat is set for a change. At least that is what the Gujarat aviation policy, which is going to be announced soon, promises. To give a boost to the sector, the state government has decided to extend tax sops on aviation turbine fuel (ATF) to companies operating intra-state flights.
The government has already floated Gujarat State Aviation Infrastructure Company Limited (Gujsail) that will facilitate the infrastructure needs of companies and airline operators coming to Gujarat.
The policy draft suggests setting up of an ATF trading company which will be a joint venture between Gujsail and Gujarat State Petroleum Corporation Limited. The move gained impetus after the ATF market was opened for public and private players. Reliance Industries Ltd was the first private player to get licence to market the special fuel in India.
The VAT on ATF for flights operating within the state would be waived off for five years from the policy announcement date. Helicopters with non-scheduled operations in the state will also be exempted from paying the tax.
"The policy was drafted in 2010 and is still under review. To finalise on tax and other exemptions it has been sent to revenue and finance departments for clearances. Once we get the green light, government will apply for licence to trade ATF or get into an MoU with private players like Reliance," said a senior government official.
20/04/11 Ankur Jain/Times of India
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