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Ministry may seek funds for IA fleet expansion

Ashwini Phadnis

NEW DELHI, Sept. 17

THE Ministry of Civil Aviation is likely to approach the Finance Ministry for release of funds for the much-awaited fleet expansion plan of Indian Airlines (IA).

The newly-appointed Minister for Civil Aviation, Mr Syed Shahnawaz Hussain, told Business Line in an exclusive interview that though he had not met the Finance Minister, Mr Yashwant Sinha, it is likely that the issue would be broached when the two meet.

``I believe there is a proposal for such funds for IA which has been approved by the Cabinet earlier. I will study all the implications, examine the situation and then firm up the Ministry's proposal on the issue,'' Mr Hussain said.

The multi-billion dollar contract for purchase of 40 aircraft by IA is lying in cold storage for some time now. IA sources had earlier told this correspondent that though a report was submitted to the airline board, no action was taken on it.

The total cost of the project is estimated at around

Rs 9,000 crore including the cost of aircraft, the expenditure on spares and inventories, simulator, ground support equipment and training.

The airline which hopes to induct the aircraft over a five-year period starting this year, has estimated that it will require between 15-17 aircraft of the 100-seater variety, seven-eight aircraft of the 150-seater variety and 15-16 aircraft of the more than 150-seater variety.

Outlining his plans for the sector, the Minister said that he has already started meeting people connected with civil aviation including several Ministers who earlier held charge of the Ministry.

On the civil aviation policy, the Minister indicated that he had already asked officials to start working on it. ``It will be announced in a time-bound fashion. But I do not want to set a time-frame just yet as I have hardly been here for 10 days,'' the Minister.

When pressed for the salient features of the policy and whether there will be greater participation for the private sector, especially in areas where they have limited or no participation, Mr Hussain said ``in the present globalised environment why do yo u need to depend on the Government?''