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Our Bureau

New Delhi , June 26

THE Government will allow a new domestic airport to come up within 75 km of the Delhi airport, the Minister for Civil Aviation, Mr Praful Patel, has said.

Speaking to the media on the inaugural flight of Air Deccan operating between Gwalior and Delhi, the Minister said the new thinking in the Government has been specified in the transaction document to be provided to the eight bidders shortlisted for participating in the restructuring and modernisation programme of the airport.

The revised documents will be provided to the bidders within the next two weeks and the Government hopes to announce the successful candidates for Delhi and Mumbai airports by mid-September this year. The Minister, however, said no final decision has been taken as yet on the site for the proposed domestic airport.

The Government is also considering a proposal to provide some concessions to airlines operating to smaller cities and towns so as to further improve domestic air connectivity. "We are seriously thinking of proposals like exempting airlines operating to smaller towns and cities from paying parking charges. This is part of the process of moving airlines out of Delhi and Mumbai," Mr Patel said.

The Minister said there was no change in the Government's thinking on foreign direct investment (FDI) limit in the domestic aviation sector, despite calls from the Planning Commission for a review. "The policy of the Government on the issue is very clear. There is no immediate plan to review the FDI cap at the moment. We do not foresee any change in the near future," the Minister added.

Asked whether the fleet acquisition plans of Air India and Indian Airlines would be taken together before the Cabinet Committee on Economic Affairs (CCEA), the Minister merely said, "I do not think that there is any attempt to link the two projects."

However, unlike in the case of IA, the Government would allow AI to conduct price negotiations before getting the nod from the Public Investment Board (PIB), Mr Patel said.

The AI board recently cleared a proposal to acquire 50 Boeing aircraft valued at about Rs 30,000 crore.

The airline plans to induct eight Boeing 777-200LR, 15 Boeing 777-300ER and 27 Boeing 787.

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