New Delhi: oon after putting the draft civil aviation policy in the public domain for stakeholder comments, RN Choubey, Secretary – Civil Aviation, met with BusinessLine to outline the policy’s finer details.
A lot of what is being proposed involves the States — such as an 80:20 viability gap funding (VGF) where the Centre will meet 80 per cent of the cost and the States, the rest. Have the States accepted this proposal?
We will make this offer. It is up to the States. If they want regional connectivity to progress, they must make tax on aviation turbine fuel (ATF) less than 1 per cent and agree to this 20 per cent (VGF). They also must agree to provide water and power at concessional rates and security free of cost. We want it in place by April 1, 2016.
How many States will come on board?
That prediction is a difficult one.
Has the offer of VAT of 1 per cent or less in Regional Connectivity Scheme airports been made to the States?
Now it will go. Any State which wants small airports and regional connectivity and (wants) its people to start flying…after all we are seeking VAT of 1 per cent or less on ATF, on fuel which is not being sold now. So there is no loss to them.
Why should I pay subsidy which goes in part to the State? The idea is that subsidy should be given for the benefit of the flyers.
30/10/15 Business Line
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A lot of what is being proposed involves the States — such as an 80:20 viability gap funding (VGF) where the Centre will meet 80 per cent of the cost and the States, the rest. Have the States accepted this proposal?
We will make this offer. It is up to the States. If they want regional connectivity to progress, they must make tax on aviation turbine fuel (ATF) less than 1 per cent and agree to this 20 per cent (VGF). They also must agree to provide water and power at concessional rates and security free of cost. We want it in place by April 1, 2016.
How many States will come on board?
That prediction is a difficult one.
Has the offer of VAT of 1 per cent or less in Regional Connectivity Scheme airports been made to the States?
Now it will go. Any State which wants small airports and regional connectivity and (wants) its people to start flying…after all we are seeking VAT of 1 per cent or less on ATF, on fuel which is not being sold now. So there is no loss to them.
Why should I pay subsidy which goes in part to the State? The idea is that subsidy should be given for the benefit of the flyers.
30/10/15 Business Line
