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New Delhi: The Minister for Civil Aviation, Praful Patel,You are not allowed to view links. Register or Login, is to make a detailed presentation on the issues facing the domestic aviation sector at the next meeting of the Union Cabinet slated for Thursday. This follows the sector making an estimated loss of about Rs 10,You are not allowed to view links. Register or Login,000 crore or $2 billion in 2008-09. Most ReadMeets PM
The decision on the presentation was firmed up at a meeting between the Prime Minister,You are not allowed to view links. Register or Login, Dr Manmohan Singh, and Patel here on Saturday. Sources indicated that the Ministry of Civil Aviation is likely to propose that a Group of Minister (GoM) be constituted to look into the various problems affecting the profitability of domestic airlines.
Is aviation in India about the country's interest or Air India's interest?The industry wants the Government to take steps to reduce the burden of the high price of aviation turbine fuel as the base price of ATF is higher in India than that in other parts of the world. "If the Government can provide a subsidy of more than Rs 1,00,000 crore for petro-products then why not give relief of about Rs 5,000 crore, which is the amount that the States collect by way of taxes and other levies on ATF?" a senior official asked.
Sales tax on ATF
The industry estimates that if ATF were to attract a uniform sales tax rate throughout the country, then in 2008-09, it would have provided a relief of about Rs 3,200 crore to the industry. Currently, the sales tax rate vary: 30 per cent in Gujarat,You are not allowed to view links. Register or Login, 29 per cent in Bihar, 28.75 per cent in Madhya Pradesh, while Andhra Pradesh has capped it at 4 per cent.
Centre cannot bail out private airlines: PatelLast year, the Government had hoped to push through an ordinance that would peg the sales tax on ATF at 4 per cent across the country. The move, however, was dropped after consideration at the highest level, senior officials of the Ministry of Civil Aviation said. At the meeting, the issue of re-constitution of the Air India board and equity infusion into the State-owned airline were also discussed.
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Aviation issues: Praful to make presentation to Cabinet
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