Mega aviation package to cut levies, ease rules soon

Niti Aayog leads effort to make India aviation hub, involving multiple ministries

- Dhirendra Kumar & Manas Pimpalkhare

The Union government is working on a comprehensive package for the aviation sector involving lower user fees, relaxed regulations and tax concessions, three government officials aware of the development said.

Federal think tank Niti Aayog is leading the initiative, holding consultations with the ministries of aviation, commerce, finance, home, petroleum and environment for the package, the people cited above said on the condition of anonymity.

While the civil aviation ministry is focused on regulatory relaxations and route allocation, the commerce ministry will work to align the package with India's trade goals and encourage foreign investment.

The finance ministry will examine tax concessions, particularly on aviation turbine fuel (ATF), while the petroleum ministry will work with states to rationalize value-added tax.

Meanwhile, the environment ministry will ensure sustainability norms, and the home ministry will work on efficient immigration and security protocols.

State governments are expected to support regional airport development, the people cited above added.

"An official announcement is expected in the coming months, with Niti Aayog tasked with providing policy guidance for ensuring economic viability. Several rounds of inter-ministerial discussions on the matter have been held, and another round of dialogues is being planned in the coming months," one of the three officials said.