Lok Sabha Question No. 4640 (UNSTARRED), answered on 2017-03-30
Subject: Losses Incurred by Aviation Industry
Ministry: CIVIL AVIATION
Asked by: RAMSINH PATALYABHAI RATHWA, K. KAMARAAJ

## GOVERNMENT OF INDIA

(To be

## MINISTRY OE CIVL AVIATION LOK SABHA UNSTARRED QUESTION NO 4640 answered on the 30th March 2017)

## LOSSES INCURRED BY AVIATION INDUSTRY

4640.

SHRI RAMSINH RATHWA DR. K KAMARAJ

Will the Minister of CIVIL AVIATION

be to state: pleased

- sector is 0n the verge of collapse due to whether there are reports that civil aviation
- (6) if s0, the details thereof;
- Government in this direction;
- high the efforts being made by the rubeitted their charter of demands including (d) whether the aviation industry has and {Gelcosts; taxation Policy in the secteacetor Onde Government thereto?

ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(a): No Madam:

under: under Regional Connectivity Scheme unvfability Gap Funding (VGF) for operation

(Shri Jayant Sinha)

of Indian (6): Does not arise: Government with a view to promote the Policy (c) to (e): However, The Ias released the National Civil Aviatiost Aviation sector in a 'significant manner Government is to an ecosystem for the harmonised of various aviation features of the NCAP are as Skili Development; etc. The broad key Manufacturing, growth provide growth

iiRexiodtctionsef a new Category 'Schedule Commuter iii)

- in NCAP 2016. international operation has been The of 5 years and 20 aircrafts for capacity (in terms of average v) is higher for domestic all departure together) whichever number within the framework of Air operations: of domestic code share in India given requirement put points

Operations: Guidelines (RDGs) on the Air Transport 02tCategory-I routes under Route Dispersal

airports to establish 9 high standerd Seitvice vieweemedti, modernization % the existiog helpewse the pressure on the existing airports, and

(FDI) under automatic route has now been allowed in Brownfield Airport projects This move would also serve in further developing the domestic aviation infrastructure: Further, FDI limit for Scheduled Air Transport Servicel Domestic Scheduled Passenger Airline and regional Air Transport Service has been raised from 49% to 100%, with FDT up to 49% permitted under automatic route and FDI beyond 49% through Government under automatic route: However; foreigu airlines would continue to be allowed to invest in of Indian companies operating scheduled and non-scheduled air transport up capital and subject to the laid down conditions in the existing policy: Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers\_ capital paid

- i) The tools and tool-kits used by the MRO have been exempted from Customs duty. The exemption shall be given on the basis 0f list the tools and tool kits certified by the Directorate General Of Civil Aviation (DGCA) approved Quality Managers of aircraft maintenance organisations.

Further to increase the business potentials, employment generation and foreign exchange earning of the coun following provisions have been made the Budget announcements for 2016-17 for the MRO Sector try,

- i) MROs were required to provide proof of their requirements 0f parts; or orders from their client airlines\_ The process for the clearance 0f the parts has been brought in line with that of the tool kits for a one time certification by DGCA approved Quality Managers in MRO's\_
2. iv) To allow import %f unserviceabie parts including aircraft components like engines and landing gears by MROs for providing exchange advance exchange, the concerned
3. iii) To enable economies of scale; the restriction 0f one year for utilizatioii "of duty free parts has been extended to three years:
- v) Foreign aircraft brought to India for MRO work will be allowed to for the entire period 0f maintenance Or up to 6 months; Whichever is lesser; provided it undertakes no commercial flights during the period. The aircraft may, however, carry passengers in the flights at the beginning and end of the period in India. For beyond 6 various airlines On MRO 0f aircraft in the country and percentage Of expenses on MRO an airline, in which this Ministry does not interfere: stay stay stay stay