Up to Rs 2,000 crore benefit for aviation sector; Six more aiports to be auctioned
New Delhi, May 16: Finance Minister Nirmala Sitharaman on Saturday announced easing of restrictions on utilisation of Indian air space, benefiting civil aviation sector by about Rs 1,000 crore per year.
The announcements will focus on structural reforms in new sectors, where growth is possible and employment is generated, the FM said, adding that many sectors need policy simplification and that once a sector is decongested it can be boosted for growth and jobs.
Announcing the fourth tranche of economic stimulus, she said only 60 per cent of Indian airspace is freely available. More air space available would reduce travel time and save on fuel, she said.
The finance minister said six more airports will be auctioned for private participation. 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) has been rationalised. Aircraft component repair and airframe maintenance are expected to increase from Rs 800 crore to Rs 2,000 crores in three years, she added.
As announced the Prime Minister Narendra Modi earlier, the stimulus to revive the Indian economy hit by coronavirus is being released in several tranches. Equivalent to 10% of India's GDP, the economic package includes both fiscal and liquidity measures to make India self-reliant under the 'Aatmanirbhar Abhiyan'.