Lok Sabha Question No. 5012 (UNSTARRED), answered on 2021-03-25
Subject: Growth of Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Hema Malini

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTIQN NO. : 5012 (To be answered on the 25th March 2021)

## GROWTH OF AVIATION SECTOR

5012. SHRIMATI HEMA MALINI

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (2) whether there is an immense possibilities for growth of aviation sector in India;
2. (d) whether the business of aircraft has tremendously gone up in the world during the last several years and if s0, the details therees leasing
3. () whether the Government is taking adequate measures in this regard; (c) if the details thereof; SO,
4. (e) whether India should set up 4 robust aircraft leasing industry taking advantage of the increase in its air traffic; and

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

- (f) if the details thererof? SO,

TIR

(Shri Hardeep Singh Puri)

(a) Sir; There is an immense possibility for growth of aviation sector in India. 2019-20, Indian airports reported & total throughput (arrivals and departures ,domestic and international) 0f approximately 34 crore passengers. Indian aviation sector has witnessed Compound Annual Growth Rate (CAGR) of 12.4% in total passengers traffic the last 5 years in the pre-Covid period. Yes; During during

Due to the global devastation caused by the Covid-19 pandemic, Indian The total number of domestic passengers increased from approximately 2d lakhe in June 2020 to over 73 lakhs in December 2020.

taken together would handle a total throughput of around 400 million passengers by 2024-25.

- (b) and (c) The Government has taken several measures to stimulate the growth of aviation sector in the country which include, inter alia:
- () AAI has taken up development programme to spend around Rs. 25,000 new terminals, expansion or strengthening Of existing runways; aprons; Airport Navigation Services (ANS), control towers, technical blocks etottS meet the expected growth in aviation sector.
- (ii) Under Regionai Connectivity Scheme (RCS) Ude Desh ka Aam Nagrik (UDAN); as
- (iii) Govt  of India has accorded 'In-Principle approval to 21 Greenfield airports across the country.
- (v) As on 15 March 2021, exclusive air-links or Air Bubbles have been established with 27 countries: These are temporary arrangements aimecet flights are being operated on sectors under Vande Bharat Mission: many
- (iv) Domestic air services were restarted on 25 2020 in a calibrated manner. were permitted it Was increased progressively to 45% on 26 June 2020 and te 80% on 3 Dec 2020. May
- cvorRoute rationalization in the indian airspace is being implemented in soordination with Indian Air Force for efficient airspace management; shorter routes and lower fuel consumption;
- {vi) Promotion of private investments in existing and new airports through the PPP route.
- Maintenance; Repair and Overhaul (MRO) services.
- Cix) With & view to optimally utilise the infrastructure at AAI airports and Jalgaon, Kalaburgi, Khajuraho and Lilabari with rationalised concessiogaee and zero royalty:
- (d) The aircraft leasing industry plays an extremely critical role in the growth of aircraft fleet across the world ' Against the global average share of aircraft on lease of about 50%, Indian carriers are operating with over 70% of the fleet procured o lease basis. Almost all the commercial aircraft are leased financiers and lessors are the biggest beneficiaries 0f growth in Indian enginerupee-financing and high-value asset leasing industry is, therefore,va strategic necessity.
- () & (9 The necessary measures have been taken to strengthen the ecosystem for aircraft leasing and financing in India, which include, inter alia:
- (i) exemption from corporate tax for a block period of 10 years within the first 15 years for leasing units
- (ienactment %f the International Financial Services Centres Authority (IFSCA) Act providing for & Unified Regulator for the IFSC in India, followed by the announcement 0f the Unified Regulator for IFSC
- (ii) exemption from Stamp Duty on documents for such transactions carried out from International Financial Services Centres (IFSC) at GIFT-City
- (iv) lease of aircraft or helicopter or engines or any other parts thereof designated as ? financial product? under the IFSC Act
- (vi) enabling pension funds and alternate investment funds to participate in aircraft financing
- (v) permission to insurance companies to undertake aircraft insurance and invest in leasing and financing business
- (vii) enabling re-ieasing of aircraft and engines within India at the end of expiry or termination of an existing lease without physical re-export of aircraft; and

(viii) granting waivers from Importer Exporter Code (IEC) and from General Remittances (GR) for overseas iessors and financiers: