Lok Sabha Question No. 282 (STARRED), answered on 2025-03-20
Subject: Aviation Infrastructure under UDAN Scheme
Ministry: CIVIL AVIATION
Asked by: Shri Janardan Mishra, Shri Vijay Kumar Dubey

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION

Lok Sabha

## STARRED QUESTION NO. : 282

( TO BE ANSWERED ON THE  20th March 2025 )

## AVIATION INFRASTRUCTURE UNDER UDAN SCHEME

282.    SHRI VIJAY KUMAR DUBEY SHRI JANARDAN MISHRA Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the number of airports, heliports and water aerodromes sanctioned and operationalized under the UDAN scheme during the last year;
- (b) the reasons for any shortfall in achieving the targets;
- (c) the specific initiatives undertaken by the Government  to enhance cargo handling capacity at airports; and
- (d)  whether  the  Government  has  taken  any  steps  to  address  the challenges faced by airlines in aircraft leasing and financing and if so, the details thereof?

## ANSWER

Minister of CIVIL AVIATION      (Shri Kinjarapu Rammohan Naidu)

(a) to (d): A statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (D) IN RESPECT OF LOK SABHA STARRED QUESTION NO. 282 FOR REPLY ON 20.03.2025 REGARDING AVIATION INFRASTURCTURE  UNDER  UDAN  SCHEME  ASKED  BY SHRI VIJAY KUMAR DUBEY AND SHRI JANARDAN MISHRA  (a) & (b): During the last year (2024), a total of 12 aerodromes, which included 4 Heliports, have been operationalised. There has been no shortfall in achieving the targets.  (c): The following initiatives have been taken to enhance cargo handling capacity at airports:- i.  The air cargo  handling  capacity  enhancement  is  being  achieved by the establishment of new as well as expansion of the existing  air  cargo  facilities  by  the  air  cargo  terminal operators.  ii.    Currently,  the  country  has  71  air  cargo facilities, of which 49 airports are equipped with dedicated  air  cargo  terminals  designed  to  handle  high cargo volumes efficiently. Additionally, 22 airports manage  cargo  operations  through  passenger  terminals, primarily catering to regions with lower cargo volumes. iii. India's air cargo sector is witnessing significant expansion, with a dedicated cargo infrastructure currently capable  of  handling  10.3  million  metric  tonnes  (MMT) annually.  iv.    Airports  Authority  of  India  Cargo  Logistics and Allied Services  Company  Limited  (AAICLAS)  has established both dedicated domestic and international air cargo  facilities  at  airports.  Further  at  airports  with  low cargo  volume  in  Tier-II  and  Tier-III  cities  movement  of domestic air cargo is facilitated through domestic passenger terminal.  v.    AAICLAS  has  identified  air  cargo capacity  enhancement  by  the  establishment  of  new  air cargo  terminals  at  airports  namely,  Dibrugarh,  Dimapur, Dehradun, Srinagar, Vijayawada, Patna, Imphal and

Jodhpur in the FY 2025-26. Further, AAICLAS has commenced  a  newly  constructed  domestic  air  cargo facility  at  Patna  airport  on  10th  March,  2025.    (d):  The Government of India has taken several proactive steps to address the challenges faced by airlines in aircraft leasing and financing, especially with the objective of promoting India's position in the global aircraft leasing market which is  done  through  International  Financial  Services  Centre (IFSC)  at  GIFT  City.  The  incentives  available  for  leasing through  IFSCA  include:;  i.    Income  Tax  law  provides  for exemption on sale of equity shares of IFSC entity to a nonresident or a unit engaged in aircraft leasing business in IFSC subject to the conditions that the operations in IFSC have  commenced  on  or  before  1  April  2026;  and  such capital  gains  arise  within  a  period  of  10  years  from  the year in which the domestic company in IFSC has commenced operations, or AY 2034-35, whichever is later (Finance  Act,  2023)  ii.    Income  Tax  law  provides  for exemption  in  the  hands  of  a  unit  engaged  in  aircraft leasing  business  in  IFSC  in  respect  of  dividend  received from any unit engaged in aircraft leasing business in IFSC (Finance Act, 2023) iii.  Dividends issued by IFSC units to non-resident shareholders is subjected to tax at 10% (plus applicable  surcharge  and  cess)  (Finance  Act,  2023)  iv. 100% tax holiday for a period of 10 consecutive years out of  a  block  of  first  15  years.  v.    Tax  holiday  extended  for capital gains on transfer of aircraft during the tax holiday (Finance  Act,  2021).  vi.    Interest  and  royalty  payment made  by  Aircraft  leasing  entities  to  non-residents  not taxable. (Finance Act, 2021). vii. Department of Commerce  has  enabled  import,  acquisition,  supply  and export  of  aircraft  to  and  from  IFSC  from  any  customs airport,  port  or  landing  station  in  India.  viii.    DGCA  has exempted  IFSC-based  Aircraft  leasing  units  from  any approval/NOC  for  import/acquisition  of  the  Aircraft.  ix. DGFT has permitted the import of Aircraft by IFSC based Aircraft leasing entity under its Import Policy. x. Government of Gujarat has provided waiver of Stamp Duty in  relation  to  Aircraft  leasing  and  financing  in  IFSC.  xi. DGCA has amended its CARs to streamline the procedure for  in  country  transfer/re-lease  of  aircraft  including  the registration/ de-registration of aircraft within India.

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