New Delhi: Describing the decision on 49 per cent FDI in aviation as one which will transform the sector, Civil Aviation Minister Ajit Singh said on Friday the government envisages investment of $12.1 billion in the sector in the 12th Plan period (2012-2016). Singh said the rapidly expanding air transport network and opening up of infrastructure to the private sector have fuelled the growth of air traffic in India.
"Indian government has envisaged investment of $12.1 billion in the airports sector during the 12th Plan period, of which $9.3 billion is expected to come from the private sector," Singh said launching the "India Aviation - 2014" in Delhi. Singh said the investment is expected "for construction of new airports, expansion, modernization of existing airports and development of low-cost airports to keep the tariff at its minimal at smaller airports, improvement in connecting infrastructure, development of world class Air Navigation Services infrastructure."
The minister said the government had taken several initiatives in the regulatory framework for taking the aviation sector to new heights despite the challenges facing domestic aviation industry, reeling under mounting losses and rising debt burdens. "Recently, the Aircraft Acquisition Committee has been abolished to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use, which will give impetus to the growth and expansion of airlines in India.
"Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements," Singh said. He cited the Tata-Air Asia and Jet Airways-Etihad collaborations as examples of growing business confidence in the Indian civil aviation sector. The Indian airport system is poised to handle 336 million domestic and 85 million international passengers by 2020, making India the third largest aviation market.
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