Government likely to ease norms for aircraft imports
The government is likely to allow airlines to import aircraft without prior approval, Civil Aviation Minister Ashok Gajapathi Raju said. As per the existing norms, all scheduled and unscheduled regional airline operators need to get a no-objection certificate from the Civil Aviation Ministry for the acquisition or import of aircraft. The ministry has already written to the Reserve Bank of India and Directorate General of Foreign Trade (DGFT), seeking amendments in their rules so as to make the import procedure easier for airlines. “As a step forward, towards simplification of procedures, Ministry of Civil Aviation has requested Directorate General of Foreign Trade, Ministry of Commerce & Industry, for amending their notification and Reserve Bank of India to amend their master circular on import of goods and services by removing the requirement of approval of the Ministry of Civil Aviation for import of aircraft,” Raju told Lok Sabha in response to a query on Monday. As part of measures to improve the domestic aviation sector, the DGFT has also allowed airlines to directly import Aviation Turbine Fuel (ATF) on the basis of actual uses, the minister said, adding, “The issue of rationalization of Value Added Tax on ATF, has been taken up with the state governments.” Besides allowing foreign investors to invest up to 49% in equity of a domestic carrier, the government has also permitted External Commercial Borrowings (ECB) upto $1 billion for the airlines to meet their working capital requirement. According to experts, India is expected to become the third largest aviation market by 2029 and the rising number of air travelers will push the demand for new aircrafts.
August 11, 2015 | 1:28pm IST.
to success.