Business Standard

MOCA expects Cabinet nod for aviation policy by Jan third week

Image

Press Trust of India New Delhi
The Ministry of Civil Aviation expects to get the Cabinet approval for the draft aviation policy by the third week of January next, as most of the consultations have been completed.

A senior ministry official today said as many as 450 comments from various stakeholders have been received on draft civil aviation policy, which was unveiled on October 30.

Various ministries, including Finance, Home Affairs and External Affairs, have given their comments on the draft policy. Three departments of the Finance Ministry have submitted their views.

"A major part of the discussions have been completed...We expect to get the Cabinet approval for the aviation policy by the third week of January," the official said.
 

The entire policy would be put for approval, the official said even as the aviation ministry is yet to decide on the 5/20 norm for local carriers.

The ministry expects to circulate the draft Cabinet note on the aviation policy by the first week of January.

"There are healthy and good comments (received from various stakeholders)... Some comments are constructive also," the official said.

Following a request from the Federation of Indian Airlines (FIA), the ministry would also be meeting its members on December 30 to understand their views on the draft aviation policy.

About 5/20 norm, the official said a final decision on whether to continue, scrap or modify it has not been taken yet. Under this norm, only domestic carriers having five years of operational experience and having at least a fleet of 20 planes are allowed to fly overseas.

According to the official, the two per cent levy on tickets to fund regional air connectivity would be implemented immediately after getting Cabinet approval.

The much-awaited draft policy focuses on boosting regional connectivity apart from proposals for various tax sops and over 50 per cent FDI for the Indian carriers.

The policy has also mooted setting up of no-frills airports and providing viability gap funding for airlines for regional connectivity. Further, fare would be capped at Rs 2,500 for one-hour flight under regional connectivity scheme for places that are currently unserved.

Comments on the draft policy was sought till November 30.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 23 2015 | 8:22 PM IST

Explore News