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New Delhi, Mar. 15 (ANI): Civil Aviation Secretary Dr Nasim Zaidi today said the Ministry of Civil Aviation has received a request from Department of Industrial Policy and Promotion (DIPP) regarding allowing of foreign airlines’ investment in India.

He said the proposal was under consideration and a decision on this would be taken soon.

Elaborating on the overall contribution of the civil aviation to the GDP, he said that the ministry is launching the satellite accounting system to assess the actual contribution of the sector to the country’s economy.

Addressing industry’s concerns, he said the ministry is well aware of the unfavourable fiscal environment affecting the viability of civil Aviation and the Ministry would take up the issue of recent hike in Service Tax with the Finance Ministry. In the same vein, the Ministry of Civil Aviation is taking up the issue of high taxes on Aviation Turbine Fuel (ATF) and is in favour of including ATF under Goods and Service Tax (GST). On the emission and environment related issues he said that there is a need to evolve a global approach under ICAO rather than following a regional approach which might hurt the aviation sector particularly in developing countries.

He also emphasized the need for India-specific measures to further strengthen aviation sector in the country.

The passenger traffic is expected to cross 180 million mark by 2015 and 300 million by 2020. It is high time that an overall regulatory framework be further strengthened.

In this direction, DGCA is gradually being transformed into a full fledged Civil Aviation Authority (CAA) with adequate administrative and financial powers.

With regard to private sector investments in new airports, he said that Model PPP Concession Agreement is under consideration of the ministry. Further, 35 airports are planned to develop through Public Private Partnership (PPP) framework by Airports Authority of India (AAI).

This would provide much-required connectivity to Tier-II and III cities in the country.

Earlier, Dr. Vijay Mallya kicked off the India Aviation Meet. With almost 8.5 percent growth per annum, he was confident that not only would this continue, but he was hopeful that it would soon touch double digits.

Riding on the current growth momentum, civil aviation had also grown tremendously in the last 10 years. Domestic passenger has grown from 13.9 million in 2000-01 to 46 million in 2009-10 and international passenger from 14 million to 34 million.

He further added that while civil aviation sector has been unshackled considerably and successfully established a vibrant civil aviation industry, the next 10 years are going to be a litmus test for India.

He specifically highlighted the following issues for the consideration of the government: Rising cost of the Air Turbine Fuel; Growing Airport Charges; Promoting Connectivity to Tier II and III Cities and the challenge of emission.

Daniele Smadja, Head of the European Union delegation to India and Bhutan, expressed her confidence in the growth of Indian aviation industry - 18 percent per annum in the last five and six years. This would necessitate increase in aircraft fleet and would require an inclusive strategic approach.

Later, in CEOs’ perspectives on aviation industry in the next 10 years, Neil Raymond Mills, CEO, SpiceJet, pointed the need for addressing the problem of acute talent shortage in Indian scenario immediately as its scope is bound to increase in future.

Captain G R Gopinath, CMD, Decaan 360, emphasized the need for developing a coherent and long-term vision for the Indian aviation industry.

With almost all sectors of the economy recording unprecedented growth in last three years, it is high time that transport be regarded as an integral part of the economic growth.

With less than 2.5 percent of the population accessing aviation as a means of transport, Policy framers would do good to do away with knee jerk reactions which are not only inadequate but also harmful.

Willie Walsh, CEO of International Airlines Group and British Airways, noted that aviation sector is as much as a social cause as an economic instrument.

While there was a need to control emission level, it should be on the basis of incentives rather than penalties, which, he said, only contributes in eliminating the much required capital for the industry. (ANI)