Govt plans cess for airport development

New Delhi, Feb 5 (UNI) The government is planning to impose a cess on air travel to fund development of non-viable airports and air routes.

''We are proposing to have a cess to support viability gap funding for development of non-viable airports and air routes,'' said Civil Aviation Minister Praful Patel.

However, he said, the proposal is at a nascent stage. ''What we are trying is to either redefine the existing passenger service fee (PSF) or have an additional levy. There may be a change in the nomenclature.'' The minister said the Naresh Chandra committee has already recommended such a cess, though its quantum and timeframe are yet to be decided.

The much-awaited Airport Economic Regulatory Authority (AERA) Bill is likely to be tabled in the budget session of Parliament, said Mr Patel. ''There were differences on various matters but everything has been resolved, including the issue of defence enclaves.'' A regulator is essential for areas where public-private partnerships are working, said Mr Patel allaying fears that formation of an industry body by airlines -- the Federation of Indian Airlines -- will not lead to cartelisation.

He was talking to reporters on the sidelines of an international conference.

UNI