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Government reviewing existing FDI policy framework for Aviation Sector Print E-mail
Written by Anand, George   
Tuesday, 01 November 2011
New Delhi: The Government is in the process of reviewing the existing FDI policy framework for Aviation Sector. This was stated by Dr. Nasim Zaidi, Secretary,Ministry of Civil Aviation while addressing the National Conference on Civil Aviation : The Decade Ahead, organized by the Confederation of Indian Industry (CII).

He said that there would be business and investment opportunity of more than USD 130 billion by 2020 in India's aviation sector. Such a huge opportunity was not without inherent set of challenges, prominently in terms of Connectivity, Operational Efficiency and Safety.

He further stated that going forward industry would need to increasingly focus on innovation and technology to simplify & streamline the operational procedures to enhance end-user convenience.

In order to enhance connectivity especially to Tier – II & III cities, Government had constituted a Committee to expand existing Route Disbursal Guidelines and would circulate a Consultation Paper prepared by the Committee for inputs from the Industry.  Further, a Remote Area Connectivity Fund has also been proposed by the Ministry in the forthcoming XII Five Year Plan. In order to meet the Human Resource Challenge, where the Ministry expects a requirement of around 500,000 personnel, Dr. Zaidi, expected pro-active participation from the private sector for skill up gradation.   In this direction, Government has already proposed setting up of a National Aviation University.

Besides, the recent news that Domestic Airlines are expected to register losses in the tune of Rs. 3500 crore over first six months of this financial year has brought back the focus of the discussions on Viability and Sustainability of the civil aviation sector in the country. The Government is aware of the concerns and is looking into all aspects that have the potential of ensuring rapid, inclusive and sustainable growth of the industry, he added.

Dr. Vijay Mallya, Chairman, CII National Committee on Civil Aviation & Chairman, Kingfisher Airline Limited,  in his opening remarks briefly reviewed the performance of the Aviation Sector in the country over last decade and expressed hope that the sector is well on its way to truly emerge as one of the Sunrise sectors of the economy.  He specifically highlighted the need to bring down the tariff structure on ATF to improve the financial health of aviation companies.

Later, Shyam Chetty, Acting Director, National Aerospace Laboratories Ltd. made a presentation on the recent innovations in Aeronautics Technology in the country and focused on areas where maximum development is going to take place.  The session was also addressed by Mr. Dinesh Keskar, President, Boeing, Mr. Arvind Mehra – Executive Director & CEO, Mahindra Aerospace; and Ms. Tulsi N. Mirchandaney – MD, Blue Dart.   While giving an overview of the aviation sector, Dr. Keskar mentioned that the 787 Dreamliner is expected to be 20% more fuel efficient than other aircraft.

Bharat Bhushan, additional Secretary ministry of Civil Aviation and Director General, Directorate General of Civil Aviation spoke about the new initiatives of DGCA including the creation of a separate Helicopter Department. Around 500 new posts are sanctioned and recruitment process will start soon. Pilot license exam will be conducted online from November. He said that Rs. 300 Crores has been allocated for computerisation and that it is expected to be completed in this financial year.

Last Updated ( Wednesday, 02 November 2011 )
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