49% FDI can transform Indian aviation sector: Civil Aviation Minister .

Foreign Direct Investment (FDI) of 49 per cent in aviation is the single most important policy decision that would transform the country’s civil aviation sector, said Ajit Singh, Minister for Civil Aviation, Government of India, while speaking at the 11th Routes Asia Conference in Mumbai on March 17, 2013.

He said that various policy measures taken by the government had begun to yield results and hoped that the general aviation business would emerge as an important player of regional connectivity and economic development, a report in The Hindu Business Line stated.

“The Tata Sons-AirAsia proposal and interest shown by Etihad (Airways) are examples of growing business confidence in the Indian civil aviation sector.”

He said the government liberalised grant of traffic rights to Indian carriers to boost international air travel. “The new traffic rights have opened up several new international sectors and increased the traffic entitlements of our carriers by approximately 60 per cent,” he said, urging all stakeholders to engage in joint promotion of ‘Brand India’.

The Minister made it clear that government’s thrust on infrastructure development would continue. “Indian government expects investment of USD 12.1 billion during the 12th Plan period, of which USD 9.3 billion is expected to come from the private sector,” Singh said.

Besides the four Public-Private Partnership (PPP) airports at Delhi, Mumbai, Bengaluru and Hyderabad, the Airports Authority of India (AAI) had modernised Kolkata and Chennai airports, and was developing 35 other non-metro airports. The ongoing modernisation and expansion at the Chhatrapati Shivaji International Airport would enable it to handle up to 40 million passengers annually.


Source : ravelbizmonitor.com