The Hindu Business Line : Civil aviation norms may be reviewed: Patel

NEW ALLIANCE: The Minister for Civil Aviation, Mr Praful Patel, with the Administrator of the US Federal Aviation Administration, Ms Marion Blakey; and the Deputy Director, US Trade and Development Agency (extreme left), Ms Leocadia Zak, at a meeting in the Capital on Monday. — Ramesh Sharma

New Delhi April 23 The Government plans to review the existing civil aviation norms and may allow foreign airlines to acquire a stake in domestic airlines.

"No Government policy is written in stone. It is constantly reviewed. At the moment there is no proposal to allow foreign airlines to pick up equity in domestic airlines. This is a policy that could evolve as the situation develops. Currently, there is a proposal to review the level of foreign direct investment to be allowed in operation of seaplanes and helicopters. We plan to complete a review of the entire sector by the end of the year," the Minister for Civil Aviation, Mr Praful Patel, said while inaugurating the three-day US-India `Aviation partnership summit'.

Commenting on the potential of the sector, the Minister said that like the telecommunication sector, aviation too was a sunshine sector.

PPP route for growth

"There is huge potential especially as less than 1 per cent of the population takes one air trip annually. If this was to increase the number of aircraft that India requires would cross 5,000, up from 321 at present," Mr Patel said.

The Minister pointed out that for the next 10-15 years, the country was likely to record a compounded growth rate of about 25 per cent in the aviation sector. The Government was looking at public, private, partnership (PPP) for growth in this sector, Mr Patel said.

The Minister added that new greenfield airports were being planned at Pune and Kannur.

"We are also looking at a second international airport in Mumbai for which we plan to complete the bidding process by the end of the year," the Minister said.

$120-b investment needed

Addressing the gathering the Secretary, Civil Aviation, Mr Ashok Chawla, pointed out that an investment of $120 billion would be required in the sector by 2020.

"Almost two-thirds of this amount or around $80 billion would go towards purchase of aircraft and related activities," the Secretary pointed out.

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