Date:08/04/2006 URL: http://www.thehindu.com/2006/04/08/stories/2006040805351500.htm

Business

Sops for civil aviation sector

Special Correspondent

Fuel, food supplies to foreign airlines treated as exports

No licence needed for aircraft import

Export status to ATF will help oil firms claim duty drawback

NEW DELHI: The Central Government has decided to exempt public sector airlines like Air India, Indian and Pawan Hans Helicopters (PHHL) , besides others, from obtaining licences to import aircraft and also allowed jet fuel, food and beverages supplied to foreign airlines as exports.

One of the objectives is to make India an aviation refuelling hub, according to Commerce and Industry Minister, Kamal Nath.

Aircraft and helicopters, including used ones, can now be imported by PSUs like AI, Indian, PHHL, Vayudoot, Airports Authority of India, Indira Gandhi Rashtriya Udan Academy and flying clubs recognised by the Civil Aviation Ministry, without obtaining import licences from the Director General of Foreign Trade (DGFT), according to a notification issued under the new Foreign Trade Policy.

Besides these PSUs, anyone permitted by the Civil Aviation Ministry to operate scheduled or non-scheduled air transport services would also not require a DGFT licence to import aircraft or choppers. Those not in this category, however, would need a licence.

The government has decided to treat jet fuel supplies to long-distance flights of international carriers as exports enabling oil firms offer fuel at competitive rates.

Export status to aviation turbine fuel (ATF) supplied to foreign airlines would help oil firms claim duty drawback or rebate on duty chargeable on imported crude oil used in the manufacture of such fuel. In other words, ATF would become cheaper and thus India may become more attractive as a refuelling hub.