REFORMS IN CIVIL AVIATION SECTOR

The Government has taken several measures for reforms in civil aviation sector of the country by providing top class infrastructure and facilities. The Government has also provided support to the aviation sector which include, inter alia:

1. AAI has taken up development programme to spend around Rs. 25,000 crores in next 4-5 years for expansion and modification of existing terminals, new terminals, expansion or strengthening of existing runways, aprons, Airport Navigation Services (ANS), control towers, technical blocks etc. to meet the expected growth in aviation sector.
2. Government of India (GoI) has accorded ‘in-principle’ approval for setting up of 21 Greenfield Airports across the country. So far, six Greenfield airports namely, Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim, Kannur in Kerala, Orvakal in Andhra Pradesh and Kalaburagi in Karnataka have been operationalized.
3. Promotion of private investments in existing and new airports through the PPP route.
4. Under Regional Connectivity Scheme (RCS) – Ude Desh ka Aam Nagrik (UDAN), as on 27 July, 2021, 359 routes have commenced connecting 59 unserved/underserved airports, including 2 water aerodromes and 5 heliports.
5. Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption.
6. Through Air Bubble Arrangements, efforts have been made to ensure fair and equitable treatment to our carriers in the international sector.
7. Government has supported airlines through various policy measures with an aim to improve their global competitiveness such as rationalisation of taxes, creation of a conducive aircraft leasing and financing environment, effective use of bilateral traffic rights and improvement in air navigation facilities etc.
8. Government has encouraged the airlines to buy modern wide body aircraft.  So far Vistara Airlines has acquired two new wide body aircraft.

This information was given in a written reply by General (Retd.) Dr.V.K. Singh, Minister of State in the Ministry of Civil Aviationin Rajya Sabha today.

REVIVAL OF AVIATION SECTOR

The aviation sector including airlines, airports, and related services have come under financial stress on account of COVID-19 pandemic. The details of major steps taken by the Government to revive the civil aviation sector during this period, inter alia, are as follows:

1. Provide support to airlines through various policy measures.
2. Provide airport infrastructure through Airports Authority of India and the private operators.
3. Promotion of private investments in existing and new airports through the PPP route
4. Provide an efficient Air Navigation System.
5. Through Air Bubble Arrangements, efforts have been made to ensure fair and equitable treatment to our carriers in the international sector.
6. Goods and Services Tax (GST) rate reduced to 5% from 18% for domestic Maintenance, Repair and Overhaul (MRO) services.
7. A conducive aircraft leasing and financing environment has been enabled.
8. Route rationalization in the Indian airspace in coordination with Indian Air Force for efficient airspace management, shorter routes and lower fuel consumption.
9. Coordination with stakeholders to resolve issues.

The key outcome of these measures has been that inspite of the pandemic, domestic operations have reached about 50% of pre Covid level. Also the number of freighters has increased from 7 to 28.

This information was given by General (Retd.) Dr.V.K. Singh, Minister of State in the Ministry of Civil Aviationin a written reply to Shri M.V. Shreyams Kumar in Rajya Sabha today.