Lok Sabha Question No. 2060 (UNSTARRED), answered on 2015-12-10
Subject: Features of New Civil Aviation Policy
Ministry: CIVIL AVIATION
Asked by: KIRTI VARDHAN SINGH, DUSHYANT CHAUTALA, Dr. BHOLA SINGH, MUTHAMSETTI SRINIVASA RAO (AVNTHI), RAVNEET SINGH, GOKARAJU GANGA RAJU

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO. : 2060 (To be answered on the 10 th  December 2015)

## FEATURES OF NEW CIVIL AVIATION POLICY

2060. SHRI KIRTI VARDHAN SINGH

SHRI DUSHYANT CHAUTALA

DR. BHOLA SINGH

SHRI MUTHAMSETTI SRINIVASA RAO(AVANTHI)

SHRI RAVNEET SINGH

DR. GOKARAJU GANGA RAJU

Will the Minister of CIVIL AVIATION

be pleased to state:-

- a) Whether the Government has formulated new civil aviation policy with focus on reducing the cost of operations for airlines and providing affordable regional connectivity across the country, if so, the details thereof along with the salient features of the policy;
- b) Whether the Government also proposes to scrap several taxes under
3. new policy and seek private sector participation in the aviation sector;
- c) if  so,  the  details  thereof and the kind of growth projected on the implementation of the said policy;
- d) whether the draft policy envisages an open sky with SAARC Nations and countries beyond 5000 kms radius from New Delhi, if so, the details thereof;
- e) whether the draft policy suggests several cess and duty rebate to Make India a regional hub for maintenance, repair and overhaul (MRO)
7. business, if so, the details thereof; and
- f) whether the Government proposes to corporatize Airports Authority of
9. India and if so, the details thereof?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Dr Mahesh Sharma)

a) The  Regional Connectivity Scheme (RCS)  in the draft Civil Aviation

Policy  aims  at  an  all-inclusive  airfare  not  exceeding  Rs  2500  per passenger, indexed to inflation for a one-hour flight on RCS routes b) &(c)  The fiscal incentives provided in the draft Civil Aviation Policy aresold under the Regional Connectivity Scheme (RCS)  shall be exempted from service tax ATF consumed from the Regional Connectivity Scheme cargo and ATF infrastructure co-located at an airport will also get the benefit of infrastructure sector, with benefits under Section 80-IA of Income Tax Act. With these incentives it is expected that some part of the MRO business of Indian carriers which is being carried out outside India will return to the country.The incentives provided for RCS will give a boost to domestic travel

Service Tax on output services of MRO's will be exempt and aircraft tools and tool kits used by MRO's shall be exempt from custom duty Tickets (RCS) airports shall be exempt from excise duty. MRO, ground handling, d) The draft Policy ( which is on Ministry's website)  aims at an 'Open Sky' Air Service Agreement on a reciprocal basis with SAARC countries and countries located entirely beyond 5000 kms radius from New Delhi. e)   The fiscal incentives being provided are that service tax on output services of MRO will be zero-rated and the tools and tool-kits used by the MRO  will be exempt from Customs duty. f)  The  Draft  Civil  Aviation  Policy  does  not  provide  for    the corporatization  of  Airports  Authority  of  India.

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