MP's businesses dogged by poor air facilities

While the exports of big corporate houses like the Tatas, Eicher, L&T, Bajaj, Kinetic, SRF, Nicholas Piramal, Ranbaxy, S Kumar's, and Grasim are rising in Madhya Pradesh, the four airports in the state provide no facilities to them in cargo movement.

The number of tourists skipping Madhya Pradesh in the absence good air-connectivity is increasing.

According to the Confederation of Indian Industry (CII), the figure is more than two million. And, to cap it all, Chief Minister Babulal Gaur has reportedly linked cutting the rates of the sales tax on aviation turbine fuel to private airlines starting operations in Madhya Pradesh.

Though private airlines and Union government officials have suggested promoting Bhopal as the domestic airline hub, developing pilot-training facilities, an aircraft maintenance centre and a flying-club, "Gaur is unlikely to change the higher tax rates on air turbine fuel (25 per cent, plus a surcharge at 28.75 per cent)," a government source told Business Standard.

The sales tax on ATF in Madhya Pradesh is the highest in India, and for any private aviation company, ATF accounts for almost 30 per cent of operating costs.

The state government lacks experts on the aviation sector. The aviation issue has been discussed in several government-industry meets with the government sounding rigid on its stand.

The sale of ATF in MP is negligible. Even the state commercial tax department does not have data on this and there are hardly six flights between Mumbai and Indore; other airports, including Gwalior, Japalpur, and Bhopal, receive a few passengers on airports.

A CII paper says "air-traffic is estimated to increase by 70"�80 per cent if low-cost airlines on regular as well as untapped circuits are introduced."

The state, according to the CII paper, has 26 airstrips, but they are used rarely.

The civil aviation minister has asked the state government to improve aircraft operation facilities and infrastructure, and the Airports Authority of India has plans to upgrade the existing infrastructure and assured all support to improve the infrastructure in the state.

But the state government has not conducted any study on sustained air traffic and viable regular operations so far.

T K Das, executive director (planning), Airport Authority of India, has pointed out it will be difficult for the AAI to fund unviable projects. "The infrastructure of the AII is lying underutilised in Jabalpur," he said.

The CII has suggested a special purpose vehicle with the state government owning 49 per cent of equity and a private partner holding the rest, so that the state could have better aviation links.