The Hindu Business Line : Aviation policy to stay grounded for some more time

THE long-awaited civil aviation policy is likely to be sent to the Union Cabinet for its nod only after the Budget session of Parliament gets over in early September.

Official sources told Business Line that with the weight of Parliamentary work, it might be difficult for different Ministries to spend the time required to take a close look at issues connected with the policy. Before finalisation, the policy is to be circulated to several key Ministries, including Finance, to get their views on several critical issues.

Sources indicated that there might not be enough time to evolve and circulate the policy to other Ministries to seek their comments before the Budget session comes to an end.

The Budget session begins on July 5 and is scheduled to end on September 3.

The policy, despite several years having passed since the process was initiated, is still at the draft stage, and is expected to be given a final shape on several important issues.

This would include the level at which foreign direct investment (FDI) in the airline sector should be pegged and whether foreign airlines should be allowed to pick up a stake in domestic airlines.

Besides, the Government's policy document for the sector will also dwell on how to develop airports dotting the various cities in different parts of the country. While the Government has already initiated the process for modernisation and restructuring of Delhi and Mumbai airports, the policy is likely to spell out the thinking for the development of other airports as well, sources said.

The Government has already started the process of getting the views of various sections of industry.

The Minister for Civil Aviation, Mr Praful Patel, has already met the chief executive officers (CEOs) of Jet Airways, Air Sahara, Air Deccan and Indian Airlines and industry organisations such as the Confederation of Indian Industry (CII) to ascertain their views on development of the sectors.