The Hindu Business Line : Aviation policy to focus on making FDI norms flexible

THE civil aviation policy, that is to be presented to the Union Cabinet next month, will focus on bringing in more flexibility in the foreign direct investment norms in the sector, the Secretary Civil Aviation, Mr Ajay Prasad, said today.

The policy could also provide means for lowering fares to make aviation affordable apart from looking at ways to remove price monopolies in aviation turbine fuel.

On the issue of investments by non-resident Indians and people of Indian origin into the sector being treated at par, Mr Prasad said this was an issue to be decided by the Cabinet. However, the policy will not allow foreign airlines to pick up stake in domestic airlines at present.

Addressing a seminar organised by the Foundation for Aviation and Sustainable Development, Mr Prasad said the policy will also look at liberalising air services agreements and moving towards an `open sky' regime, encouraging promotion of regional airlines and creation of an Essential Air Services Fund to provide subsidy support to essential services, the Secretary said.

On development of infrastructure, Mr Prasad said, apart from the ongoing proposed restructuring of the Delhi and Mumbai airports, the Government was also taking measures to make other airports world-class entities.

Besides, a number of short-term measures are being taken at the two metro airports, including increasing the area in terminal 1-B in Delhi from 11,700 square metres to 21,000 sq. m. This will lead to peak hour passenger capacity being handled by the terminal double. The number of check-in counters, conveyor belts, lifts and escalators in Delhi is also being increased.

"After these short-term steps are completed, terminal 1-B, which is already saturated, will be able to meet the average annual growth of 12 per cent up to 2010," he said. The growth in the sector was also highlighted during the talk. Indian airports handled 59.54 million passengers during 2004-05 — a 22.3-per cent rise from 48.69 million the previous year. "The projections are that by 2010, Indian airports will handle 90-100 million passengers and 33.6 lakh tonnes of cargo," Mr Prasad said.

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