The Civil Aviation Minister earlier asserted that regulations are here to stay, but rules will have to be amended for the growth of the sector.
Civil Aviation Minister Ashok Gajapathi Raju Pusapati on Tuesday said the government is set to announce a new aviation policy shortly to boost growth and ease business in the sector.
Speaking at a conference "Aviation Day" organized by the CII in partnership with the Ministry of Civil Aviation and IATA, Raju said that while all measures will be taken to ease the investment climate, there is an equal need for rules and regulations as well.
"There is a need for rules but rules and regulations but they will not be kept just for the sake of rules," he added.
Elaborating on the new aviation policy that is expected to be taken up by the Cabinet shortly, R.N. Choubey, Secretary, Civil Aviation, said that the aviation policy would look at three major pillors- reducing cost of acquisition of aircrafts and airports and working with states to moderating taxes on ATF at the state level.
"We are working to see that all states can bring down the VAT rates to four percent on ATF; This is crucial as India has to import crude oil and moderate fuel prices are a key component to making the industry competitive," he said.
The Civil Aviation Minister earlier asserted that regulations are here to stay, but rules will have to be amended for the growth of the sector.
"Different countries have experimented with different regulations as each country is unique in its market structure and design. India, which is known to be complex market, will have to borrow ideas from different markets and will have to modify these Ideas as per requirement to ensure growth of the aviation industry," he added.
Raju emphasized that the industry, Government of India and the state governments will have to work together to drive India's emergence as the third largest Global Aviation Market.
The government, he said, is committed in its resolve to ensure ease of doing business and is moving in that direction.
Tony Tyler, Director General and CEO, International Air Transport Association, who also spoke at the inaugural session, complimented Prime Minister Narendra Modi and his Cabinet for focusing on the aspect of ease of doing business in the country.
"Indian aviation market is estimated to be valued at 282 million dollars by 2031 and will exceed a market value of 360 billion dollars post FY34," he said.
Speaking of challenges, he said players in the Indian aviation sector are reeling under billion plus losses even when profitability of the global aviation industry exceeds its cost of capital.
Sanjay Reddy, Chairman, CII National Committee on Infrastructure and Vice Chairman, GVK Power and Infrastructure, in his introductory remarks emphasized on the need for a healthy aviation industry.
The session was also addressed by host of other senior officials from the government and CEOs from several Airlines across the globe.
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