Plan panel to allocate Rs 5K crore to develop civilian plane

New Delhi: CSIR's ambitious plans to develop a 90-seater passenger aircraft are set to get a boost with the Planning Commission expected to allocate Rs 5,000 crore for the project in the 12th Five Year Plan.
"The Planning Commission is expected to sanction Rs 5,000 crore for the design and development phase of the project in the 12th Plan," officials said.
The civilian RTA project was proposed by a 15-member High Powered Committee (HPC) for National Civil Aircraft Development (NCAD), set up by the Council of Scientific and Industrial Research (CSIR) in May 2010 under the aegis of former ISRO Chairman G Madhavan Nair.
The HPC had recommended that the government should fund the development phase of the aircraft and suggested a joint venture with a private partner for the production phase.
However, the Planning Commission suggested creation of a joint venture (JV) with private equity participation for both the development phase as well as for the production phase.
Acting on the plan panel's suggestion, the CSIR had set up a committee chaired by former Finance Secretary Vijay Kelkar to the identify industry partner for the joint venture and suggest equity structure for it.
22/01/12 PTI/Economic Times

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Categories: Indian Aviation- In General Jan 2012, New Jan 2012