The government would create a new framework for pushing aviation growth in the next decade, strengthen regulatory systems and provide more certainty in policies, civil aviation secretary-designate Nasim Zaidi said today.
During this financial year, the country’s airports will handle 85 million passengers, likely to grow to 250-300 million in a decade, Zaidi estimates. ‘‘The last decade saw a lot of ad hoc responses but we have to create a new framework for the next decade,” he said at an aviation meet in Delhi. Laying down a road map for things the aviation industry can expect, Zaidi said the system needed certainty in terms of market access, licensing, ground-handling policy, equity as well as a professional regulatory system to deal with this kind of growth.
The government would also look at a positive fiscal regime for airlines to address their concerns on sales tax, withholding tax and tax on MROs (Maintenance Repair and Overhaul units for aircraft) for third-party maintenance.
| HIS BLUEPRINT FOR AVIATION |
| * Expects 250-300 million traffic next decade |
| * Create a new framework for the next decade |
| * Put in place professional regulatory system |
| * Provide fiscal incentive for airlines, MROs |
| * Need to invest $30 billion in airport infra |
| * Modernise ATC, airspace management |
| * Address manpower challenge for growth |
If the last decade saw an investment of $9 billion in airport infrastructure, India will need to invest $30 billion in the next decade in all types of airports — to push regional connectivity, secondary or multiple airports, and find ways to manage capital inflows. “We have to also look at lessons learnt in the last decade in airports, concession agreements. Economic regulation is not kill the business.. We have to ensure that concession agreements and ensure that airport business is viable,” said Zaidi. The government will also try to ensure a seamless coordination between government agencies on airport projects, the lack of which hampered the commissioning of the new airport terminal in New Delhi, and Zaidi had to spend several hours in other offices to get things done.
But airports are only half the story. There needed to be significant changes in airspace management, investments in CNS and ATM technology, investments in ground-handling, ATC and manpower.