Restrictions on utilisation of Indian air space will be eased to benefit civil aviation sector by about Rs 1,000 crore per year, Finance Minister Nirmala Sitharaman said on Saturday.
The minister made the announcement as she presented the fourth tranche of economic stimulus before the media person in New Delhi. She said only 60 per cent of Indian airspace is freely available.
“As of today, only 50% of India’s airspace is free for use. This needs to be increased and optimised. This will not only save cost of fuel but also save time. This is being done to give civil aviation a boost. This is a sector which has tremendous potential in India,” Sitharaman said.
The finance minister said six more airports will be auctioned for private participation, which will be used to create world-class airports in India.
Also, an additional investment of Rs 13,000 crore will be made by private players in 12 airports auctioned in first and second rounds.
She also said tax regime for aircraft Maintenance, Repair and Overhaul (MRO) are currently being done in abroad but now it has been rationalised.
“Once a hub is set up, India can even be an attractive market for foreign airlines to get MRO done here. This will be done both for military and civilian aircraft. This will save at least Rs 800-1,200 crore every two years,” the minister said.
Aircraft component repair and airframe maintenance are expected to increase from Rs 800 crore to Rs 2,000 crores in three years, she added.
For the past four days Sitharaman has been addressing a series of news conferences after the Prime Minister Narendra Modi earlier on late Tuesday evening announced a stimulus package worth 20 lakh crore with an aim to kick start the Covid-19 pandemic hit economy.