The Hindu Business Line : Govt set to allow private players to supply ATF

THE Government is set to allow private players to supply aviation turbine fuel (ATF), which is currently a monopoly of the three State-owned firms, IOC, BPCL and HPCL.

"We are looking at introducing competition in the supply of ATF in the country to reduce the costs," the Minister for Civil Aviation, Mr Praful Patel said on the sidelines of the World Economic Forum here on Monday.

The Minister said that ATF was one of the major operating costs of airlines in the country, accounting for about 28-30 per cent of the total operating costs as against the global level of about 15 per cent.

"Besides the PSUs, private players should also be allowed to supply ATF so that there will be competition," he said.

The Government is also considering appointing a regulator for the aviation industry, he stated. Indian Airlines will launch a pure cargo airline by the end of 2005 while Air India will restart its cargo carrier soon.

"A comprehensive civil aviation policy based on the recommendations of the Naresh Chandra Committee will be placed before the Cabinet in January," he said. The policy would cover all aspects of aviation including new players, regulatory framework and level-playing field," he added.

The process of restructuring the Mumbai and Delhi airports will be finalised by mid 2005. The Government has also identified 28 non-metro airports for modernisation and upgradation for which global financial and technical advisors have been appointed.