The Hindu Business Line : Aviation Ministry to focus on projects in hand

Fast track
The Ministry plans to complete the bidding process for the Navi Mumbai airport by March next
It will also take up the proposal for making Nagpur a cargo hub during the remaining period

Our Bureau

New Delhi, July 23 With less than a year to go before the next general elections, the Ministry of Civil Aviation plans to concentrate on projects in hand including taking steps to reduce the prices of aviation turbine fuel, getting the modernisation of Nagpur airport underway, securing a bail out financial package for cash strapped Air India apart from completing the bidding for the Navi Mumbai airport project in the remaining tenure of the Government, a senior official of the Ministry said on Wednesday.

“The remaining period in office for the UPA Government is too short to start any new projects. We plan to concentrate on projects in hand. If there was more time, the modernisation of Chennai and Kolkata airport may have been done differently, if the State Governments also agreed,” a senior Government official said a day after the Manmohan Singh Government won the trust vote in the Lok Sabha.

The Ministry plans to request the Cabinet Secretary to not only convene a meeting of the inter-ministerial committee set up to examine various issues relating to the financial crises being faced by the domestic airline industry, but also submit its report by the end of next month.

The Committee is expected to suggest long and short-term proposals for improving the financial health of the sector including looking at ways that the price of ATF can be reduced. In the last few months the rising ATF costs has affected the bottom line of many airlines and seen the industry increase fares several times to offset the increasing fuel bill.

Air India package

The Ministry will also be approaching the Government to seek a financial package of around Rs 2,300 crore for Air India.

“The airline proposal seeking financial help is expected in the next three weeks. The Minister for Civil Aviation has already spoken to the Prime Minister about the issue,” the official said.

The Ministry also plans to complete the bidding process for the Navi Mumbai airport by March next year and start the proposal for making Nagpur a cargo hub during the remaining period in Government.

The Government is also hopeful of being able to get the Airport Economic Regulatory Authority in place before it demits office, the official added.