Lok Sabha Question No. 334 (UNSTARRED), answered on 2022-02-03
Subject: Increase in Revenue of Civil Aviation Sector
Ministry: CIVIL AVIATION
Asked by: Nayab Singh

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 334 (To be answered on the February 2022) 3rd

## INCREASE IN REVENUE OF CIVIL AVIATION SECTOR

## 334. SHRI NAYAB SINGH

## Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) whether the Government has taken any important initiative to increase revenue in civil aviation sector;
- (c) the details of the sectors where the Government successfully earned higher revenue after implementation of these initiatives; and
- (b) if the details thereof; SO,
- (d) the extent to which the revenue has been increased in comparison to previous year as a result of the said initiatives, sector-wise?

## ANSWER

Minister of State in the Ministry of CIVIL AVIA TION

(GEN. (DR) V. K SINGH (RETD))

(a) to (d) Yes sir . Some of the initiatives undertaken by the Government to increase revenue in civil aviation sector are as follows:

- (iii) Airports Authority of India (AAI) has taken up a development programme to spend around INR 25,000 crores in next five years for construction of new airport terminals, expansion and modification Of existing airport terminals, expansion/ strengthening of existing runways, aprons,
- (i) Due to the outbreak of COVID 19, scheduled domestic operations were suspended by the Ministry of Civil Aviation (MoCA) on 25.03.2020. were resumed in a calibrated manner 0n 25.05.2020 with 33 percent of the capacity and fare capping (with lower and upper limit o fares specified on different sectors): The fare capping protected the interests of the passengers as well as the airlines. After a careful evaluation, domestic operations were restored without any restrictions On capacity deployment Wef 18.10.2021; (ii) MoCA launched the Regional Connectivity Scheme (RCS)- UDAN (Ude Desh ka Aam Nagrik) scheme for providing connectivity to un-served and under-served airports of the country. Under this scheme, 403 routes, connecting 65 airports (including 8 heliports and 2 water aerodromes) have been operationalised as on 31.01.2022. They

control towers and technical blocks etc:

- (v) INR 36,000 Crores have been planned for investment in the development of new Greenfield airports across the country under PPP mode:
- (iv) Three Public Private Partnership (PPP) airports at Delhi; Hyderabad and Bengaluru have undertaken major expansion plan to the tune of INR 30,000 Crores by 2025.
- (vi) The Government has accorded 'in-principle' approval for setting up of 21 Greenfield Airports across the country. So eight greenfield airports namely, Shirdi in Maharashtra, Durgapur in West Bengal, Pakyong in Sikkim; Kannur in Kerala, Orvakal in Andhra Pradesh; Kalaburagi in Karnataka, Sindhudurg in Maharashtra and Kushinagar in Uttar Pradesh have been operationalized: far,
- (vii) A conducive aircraft leasing and financing environment has been enabled.
- (vii) Goods and Services Tax (GST) rate has been reduced from 18% to 5% for domestic Maintenance, Repair and Overhaul (MRO) services
- (viii) Improvement in air navigation infrastructure at Indian airports is being carried out:
- (ix) The number of freighter aircraft deployed by Indian carriers has increased from 7 in 2018 to 28 in 2021. As a result the share of Indian carriers in international freighter movements to and from India increased from 2% to 19% over the last two years:

The revenue of Indian airlines carriers has increased from around INR 11,810 crore during April-September 2020 to around INR 20,690 crore during AprilSeptember 2021. The revenue of Indian airports has increased from around INR 2,900 crore during April-September 2020 to around INR 4,480 crore during April-September 2021.