India set to ease airspace curbs to cut cost of flying

Dubai - Restrictions on the utilisation of Indian air space will be eased so that civilian flying becomes more efficient, said FM Nrimala Sitharaman.

India will ease restrictions on Indian airspace utilisation to reduce cost of flying, Finance Minister Nrimala Sitharaman said on Saturday.
Outlining the fourth tranche India's Rs20 trillion fiscal stimulus announced by Prime Minister Narendra Modi, the minister said at a media briefing that to ensure optimum utilisation of airspace, the government will ease restrictions on the utilisation of Indian airspace. She also announced that that six more airports would be auctioned to private players.
"As of today only 50 per cent of India's airspace is free for use. This needs to be increased and optimised. This will not only save cost of fuel, but also save time. This is being done to give civil aviation a boost. This is a sector which has tremendous potential in India,"  Sitharaman said.
"Restrictions on the utilisation of Indian air space will be eased so that civilian flying becomes more efficient. The move will benefit the aviation sector to the tune of Rs10 billion per year," she said. Subsequently, it will also result in a reduction in fuel use and time. It will also have a positive impact on the environment, FM said.
In addition to benefiting the aviation sector, efficient management of airspace is likely to reduce the cost of flying for passengers.
Sitharaman said India would become a global hub for Aircraft Maintenance, Repair and Overhaul (MRO). The tax regime for the MRO ecosystem has been rationalised. Aircraft component repairs and airframe maintenance will increase from Rs8 billion to Rs20 billion in three years.
Airports Authority of India has awarded three airports out of six bid for operation and maintenance on public-private partnership (PPP) basis. Additional investment by private players in 12 airports in first and second rounds are expected to be around Rs130 billion, she said.
The minister said the new structural reforms also include a move to link India's robust start-up ecosystem to the nuclear sector. As part of this, technology development cum incubation centres will be set up for fostering synergy between research facilities and tech entrepreneurs.
"The private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities. Future projects for planetary exploration and outer space travel, will be open for the private sector. Indian private sector will be a co-traveller in India's space sector journey. The government will provide a level-playing field for private companies in satellites, launches and space-based services," she said.
The minister said the reforms being unleashed would impact those sectors which are new horizons of growth, unleashing new investment, boosting production and creating jobs.
"We are going to focus on eight sectors today - coal, minerals defence production, airspace management, MROs, power distribution companies, space sectors, atomic energy," she said. issacjohn@khaleejtiems.com

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