The Hindu : Karnataka News : Centre for regulator for aviation sector

Online edition of India's National Newspaper
Friday, Feb 11, 2005

Karnataka

Karnataka

Centre for regulator for aviation sector

By Our Special Correspondent

BANGALORE, FEB. 10. With the open skies policy coming into operation, the Centre has proposed to introduce a Bill during the budget session of Parliament providing for an independent regulator for the aviation sector, on the lines of the regulators for the telecom and insurance sectors, the Minister of State for Civil Aviation, Praful Patel, has said.

Mr. Patel was participating in a national conference on "Indian Aviation" organised by the Confederation of Indian Industry (CII) here.

He said the comprehensive aviation policy will be ready by March 31 and it will incorporate the recommendations of the Naresh Chandra Committee, which includes permitting private airlines to fly abroad.

The Director-General of Civil Aviation (DGCA) is, as such, a regulator, he said and mentioned that the DGCA's regulatory framework will be strengthened.

He reiterated the Centre's commitment to the civil aviation sector, which has a good outlook. The growth rate in the sector over the years was not commensurate with the country's size and the population. Of late, there has been a spurt in air travel, thanks to the dynamics of pricing of low-cost airlines.

At the same time, he said all efforts will be made to strengthen Air India and Indian Airlines, the two national carriers, and the Government has planned to purchase aircraft at an outlay of $6 billion. The price negotiations are going on with regard to Indian Airlines and they are expected to be completed by the end of the month. The Air India board, he said, will decide on the acquisition this month.

About public-private partnerships in the aviation sector, Mr. Patel said the issues that needed to be addressed includes infrastructure. The country, he said, has only six international and 30 domestic airports and 400 airstrips, but many of them are not operational or are underutilised. "Even as we aspire for growth in the sector, safety aspects need to be taken care of and we cannot compromise on this primary factor. Just because someone is in a hurry, we cannot compromise on safety standards," he said. On the high price of aviation turbine fuel, Mr. Patel said the Government is in the process of unbundling the monopoly of the public sector undertakings in the oil sector. In India, the levy on turbine fuel is 30 per cent compared with 12 per cent internationally.

The Union Minister said Aero India will propel the growth of the aviation sector. As for the international airport at Devanahalli, he hoped that the work would commence soon.

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