Lok Sabha Question No. 756 (UNSTARRED), answered on 2020-02-06
Subject: Concern of  Indian Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Gurjeet Singh Aujla

756.

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 756 (To be answered on the February 2020) 6th

## CONCERN OF INDIAN AVIATION SECTOR

SHRI GURJEET SINGH AUJLA

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government is aware that the Indian civil aviation Industry is going through a bad phase due to high cost of aviation fuel, high airport cost, etc;;
- (c) if not, the reasons therefor?
- (b) if so, the details of steps taken by the Government to address this concern; and

## ANSWER

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

(Shri Hardeep Singh Puri)

- (a) The Indian civil aviation industry is experiencing challenges due to, inter alia; high cost 0f ATF, infrastructure issues and closure of operations of one airline, etc.
- (b) & (c) The Government has constantly been responding to industry conditions and undertaking specific measures to facilitate and enable growth of the sector: The major steps taken by this Ministry to help civil aviation sector include:
- IL Provide an efficient Air Navigation System in the Country
- I Provide airport infrastructure through Airports Authority of India and the private operators
- III; Regulate the aviation industry through Directorate General of Civil Aviation to ensure safety standards:
- V. Provide Viability Funding and other concessions to selected airline operators under Regional Connectivity Scheme (RCS) UDAN (Ude Desh ka Aam Nagrik) as per the scheme document; Gap
- IV. Coordinate with all stakeholders to resolve their issues through regular interactions:
- VI Provide financial assistance to Air India aS per the approved Plan:

VII; Reduction of Central Excise Duty applicable on ATF from 14% to 11% w.e.f: Ilth October 2018.

- IX Rationalization of Category-I routes under Route Dispersal Guidelines on the basis of criteria given in National Civil Aviation Policy 2016.

VIII: Rationalization of Goods and Services Tax provisions.

- X The requirement for 5/20 is modified and all airlines can commence international operations provided that they deploy 20 aircraft or 20% of total capacity (in terms of average number 0f seats on all departure put together) whichever is higher for domestic operations.

XII With a view to modernize existing airports So as to establish high standards and ease demand pressures on them, 100% Foreign Direct Investment (FDI) under automatic route has been allowed in brownfield airport projects.\_This would facilitate the development of domestic aviation infrastructure. FDI for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been allowed upto 49% under automatic route: For Non-Resident Indians (NRIs); 100% FDI will continue to be allowed under automatic route. Foreign airlines are allowed to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their up capital. Such investment is subject to the condition; inter alia, that Scheduled and Non-Scheduled Operator's Permit would be granted only to a company the substantial ownership and effective control of which is vested in Indian nationals. paid

- XI: Liberalization of domestic code share points in India within the framework of Air Service Agreements.