The Hindu Business Line : Plan panel may address IA, AI recapitalisation

THE Minister for Civil Aviation, Mr Praful Patel, on Monday met the Deputy Chairman, Planning Commission, Dr Montek Singh Ahluwalia, to discuss issues concerning his Ministry, including the under-capitalisation of Indian Airlines (IA) and Air India (AI).

"I have requested the Planning Commission to consider the matter of under-capitalisation of AI and IA actively," Mr Patel said after emerging from the meeting.

On the issue of infusion of Rs 325 crore into IA, as had been recommended by the Kelkar Committee, Mr Patel said that the matter was also discussed at the meeting and noted that he did not mind if these funds were linked to the fleet acquisition plans of the national carrier.

The Minister said that he would be meeting the Finance Minister, Mr P. Chidambaram, shortly on withdrawal of withholding tax on lease of aircraft, which was announced in the Union Budget.

Presenting the Budget, Mr Chidambaram had proposed withdrawal of the tax exemption granted to Indian companies to acquire aircraft or aircraft engines on lease from foreign firms prospectively from September.

Besides, the issue of development of infrastructure, including airports not only in the metros but also in other cities were also taken up at the meeting. Mr Patel said that Monday's meeting was a "broad meeting" and another would be held shortly.

"We will be making another presentation to the Planning Commission shortly," Mr Patel said.