The Indian government has awarded 56 airports under the Regional Connectivity Scheme UDAN, in the last two years. Eighteen of these airports have been operationalised and every month, two functional airports are added under the scheme. Speaking at the Wings India 2018, organised by FICCI jointly with the Ministry of Civil Aviation and Airport Authority of India, Civil Aviation Secretary RN Choubey said the government was committed to connecting the cities and towns to increase regional connectivity in the country. He added that oil prices needed to remain soft, below $80 a barrel for the sector to grow at a CAGR of 15 per cent for the next 20 years.
Choubey highlighted a major concern of the sector, saying that VAT on Aviation Turbine Fuel was among the highest in the world. Addressing the concern, he suggested its inclusion in the GST framework or the states bring down VAT under 5 per cent on ATF. His suggestions were supported by Telangana Minister KT Rama Rao, who said the state had the potential of becoming an aviation hub. He urged the Centre to open a National Aviation University in Telangana.
Senior Vice President, FICCI, Sandip Somany said that UDAN merits a special mention. “It provides greater connectivity to under-served and un-served airports of the country,” he said. The four-day event will see the presence of 125 exhibitors and 35 CEOs. Wings 2018 will also see representation from 10 countries- USA, Japan, UK, Russia, Singapore, France, Germany, Malaysia, Hong Kong, Italy, and Iran.
