The Hindu Business Line : Naresh Chandra panel's second report on civil aviation likely soon

THE Naresh Chandra Committee, set up by the previous Government to chart out a road-map for the civil aviation sector, is likely to submit its second report by the end of this month.

The report will focus on implementation issues especially relating to co-ordination with other Government departments, including the Ministries of Finance, Defence and Home Affairs.

The first report of the committee, which was submitted in December last year, suggested 49 per cent foreign direct investment (FDI) in domestic airlines, setting up of an aviation economic regulatory authority, speeding up privatisation of Air India and Indian Airlines, transfer of management control to a strategic partner and private placement of the shares of the two airlines with domestic FI and FIIs.

The first report also called for establishment of an essential air services fund to provide subsidy support for essential but uneconomical routes. The committee consists of the Chairman, HDFC, Mr Deepak Parekh; the Advisor, Planning Commission, Dr Pronab Sen; the Secretary, Civil Aviation, Mr K. Roy Paul; and the Additional Secretary and Financial Adviser, Ministry of Civil Aviation, Mr V. Subramanian.

Sources said that the next meeting of the committee will be held on Monday, (June 28) - the same day that the newly constituted four-member empowered Group of Ministers (eGoM) on restructuring and modernisation of Delhi and Mumbai airport will hold its first meeting. However, sources refused to speculate on whether the Monday meeting was likely to be the committee's final sitting.

The second report of the committee will also form the basis for the long-awaited civil aviation policy, which is expected to be finalised before the year-end.