Aviation Minister in talks with different states for the development of regional aviation sector

Radhika Bansal

13 Oct 2021

Jyotiraditya M. Scindia, the Union Civil Aviation Minister, has written to the Chief Ministers of several states requesting their intervention to instruct the concerned officers to take action to expedite various matters such as land allocation and fund deposition with Regional Air Connectivity Fund Trust (RACFT), VGF support for International UDAN operations, and other initiatives to improve aviation infrastructure in individual states.

To meet the country's growing passenger demand, AAI has invested INR 20,000 crore in the development and expansion of airports over the next 4-5 years.

Andhra Pradesh

In the letter written to the CM Y. S. Jagan Mohan Reddy, Mr Scindia has mentioned that the State Government has already handed over the quantum of land in most of the airports.

ANDHRA PRADESH AIRPORT

However, some portion of lands viz 14.31 acre at Tirupati required for extension of the runway and other operational requirements, 10.25 acre at Rajahmundry for construction of residential colony and 50 acres at Kadapa for extension of the runway and Approach Lighting System are yet to be handed over to AAI by the State Government. The diversion of the Eluru canal needs to be undertaken by the State Government for extension of the runway up to 4000 m at Vijaywada airport along with the approach lighting system.An amount of INR 14.64 Crore needs to be deposited with Regional Air Connectivity Fund Trust (RACFT) at the earliest by the Andhra Pradesh Government (20% of VGF share for UDAN flights till 31.07.2021 in the State). The Minister stated, “State Govt may give their consent to provide 100% VGF support for International UDAN operations (Vishakhapatnam - Dubai). On receipt of the consent of the State Government for 100% VGF support, routes will be put to bidding for the airlines.”

Arunachal Pradesh

Mr Scindia has written to the CM Pema Khandu seeking his intervention in land acquisition for various aviation sector projects which includes land requirements of 5.5 acres for installation of Non-Directional Beacon (NDB) and Doppler Very High-Frequency Omni Range (DVOR) protection area and construction of Residential Colony for airport staff at Tezu Airport.

TEZU AIRPORT, ARUNACHAL PRADESH

Another 70 acres at Dirang, 34.3 acres at Daporijo, 2.3 acres at Passighat, 7 acres at Along and 10.6 acres at Ziro. He said that the State Government needs to immediately operationalize heliports at Daparizo, Itanagar, Tuting, Walong, Yinghiong and Ziro, for which a Budget of INR 8.44 crores per heliport has already been allocated by this Ministry under Regional Connectivity Scheme (RCS)- UDAN (Ude Desh ka Aam Nagrik).

Assam

He has written to CM Himanta Biswa Sarma drawing his attention to the matter of land requirements of 78.5 acres at Dibrugarh Airport, 109 acres at Lilabari Airport, 1165 acres at Silchar Airport & 50 acres at Jorhat Airport. He mentioned that the land required at Dibrugarh Airport will be utilized for future expansion of the Airport and necessary runway strip, while that at Lilabari Airport will be used for construction of Isolation bay, necessary runway strip and development of a new Aviation Manpower Training Institute.

GUWAHATI AIRPORT, ASSAM

The land requested at Silchar Airport will be used to develop city-side infrastructure and land at Jorhat Airport will be used for the development of a New Civil Enclave. Out of the total projected land, only 8.5 acres of land has been handed over at Dibrugarh Airport, and the rest of the land parcels are yet to be handed over by the State Government.

Bihar

Mr Scindia has written to the CM Nitish Kumar, underscoring the land requirements of 49.5 acres at Patna airport for runway extension, Parallel taxi track, Doppler Very High-Frequency Omni Range (DVOR) equipment, Isolation Bay and Glide Path, 50 acres at Purnia Airport for development of New Civil Enclave, 121 acres at Raxaul to develop the airport for ATR-72 type of Aircraft, 475 acres at Muzaffarpur airport to develop it for the operation of A-320 type of aircraft, 78 acres at Darbhanga for development of new civil enclave along with CAT I approach light system.

GAYA AIRPORT, BIHAR

He said that Bihar should also take into consideration the scope for international connectivity and consequently viability of operation of a wide-body aircraft. Ministry has requested the State Government to consider the provision of 100% VGF support for commencing International UDAN operations from Patna and Gaya (Gaya - Bangkok, Gaya - Kathmandu, Gaya - Yangon, Patna - Kathmandu & Patna - Dubai). On receipt of the consent of the State Govt for 100% VGF support, routes will be put for bidding for the airlines.

Chattisgarh

While writing to the CM Bhupesh Baghel, he highlighted the matters related to the land requirement of 569 acres at Raigarh for the development of the airport to make it suitable for operations of ATR72/Q400 type of aircraft in Phase-l and AB-320 type of Aircraft in Phase-II. Further, the Minister observed that restoration of airport land in favour of AAI by the State Govt. is also pending at the end of the State Govt.

RAIPUR AIRPORT, CHATTISGARH

In addition, the Minister mentioned that an amount of INR 60 Lakh needs to be deposited with Regional Air Connectivity Fund Trust (RACFT) at the earliest by the State Govt. as 20% of Viability Gap Funding (VGF) share for Ude Desh ka Aam Nagrik (UDAN) flights till 31.07.2021 in the State. He also urged the Chief Minister to intervene and expedite the development of Ambikapur airport for 3C operations under Regional Connectivity Scheme (RCS) - UDAN operations for which a budget of INR 90 Crore has been allocated.

Goa

Mr Scindia has drawn the attention of CM Dr Pramod Sawant on various issues that are impacting the implementation of various projects about the aviation sector in Goa. He mentioned that long back AAI had requested 20.48 acres of land for construction of city side car parking and other infrastructural work at Goa Airport.

GOA AIRPORT

The cost of acquisition was also paid by AAI to the State Government of Goa. However, notification for the acquisition was issued by the State Government in respect of 15.50 acres only, out of which 9.23 acres is yet to be handed over to AAI.

Gujrat

Mr Scindia has drawn the attention of CM Vijay Rupani on the following issues that are impacting the implementation of various projects about the aviation sector in Gujarat:

BHAVNAGAR AIRPORT, GUJRAT

490.36 acres of land is required at Bhavnagar airport for making it suitable for operation of AB-320 type of aircraft.17.38 acres of land is required at Jamnagar airport for development of city side infrastructure.322.85 acres of land is required at Kandla airport for making it suitable for operation of AB-320 type of aircraft.434.5 acres of land is required at Porbandar airport for revision of orientation of runway and making it suitable for operation of AB-320 type of aircraft.18.33 acres of land is required at Vadodara airport for basic strip requirements and parallel taxi track.96.93 acres of land is required at Surat airport for installation of CAT-I approach lighting system and extension of runway. The State Government has also been requested for allocation of 2100 acres of land at Surat airport for development of 2nd runway.The State Government has been requested to clear the dues of Seaplane operation for operations between Sabarmati River Front and Kevadia.An amount of INR 47 Lakhs is outstanding on the part of State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Himachal Pradesh

Mr Scindia has drawn the attention of CM Jai Ram Thakur on the following issues that are impacting the implementation of various projects about the aviation sector in Himachal Pradesh:

SHIMLA AIRPORT, HIMACHAL PRADESH

AAI has projected a land requirement of 13 acres at Shimla airport for strengthening of runway and construction of AAI Residential Colony. Further, the State Government has been requested to extend support for removal of obstacles and provide requisite land for making Shimla airport compatible for operation of ATR-72 type of aircraft.The State Govt. has been requested to complete the infrastructure works at Shimla, Mandi, Manali and Baddi for operationalization of these heliports at the earliest.An amount of INR 1.44 crores is outstanding on the part of State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Jharkhand

Mr Scindia has drawn the attention of CM Hemant Soren on the following issues that are impacting the implementation of various projects about the aviation sector in Jharkhand:

JHARKHAND AIRPORT

For upgradation and development of Ranchi Airport, AAI has projected a land requirement of 506.4 acres, which is yet to be handed over to AAI.Similarly, AAI requires 545 acres of land for development of Dhalbhumgarh airport to make it suitable for operations of A-320 type of aircraft.The State Government has to complete the approach road to Deoghar airport, which is otherwise almost ready to be operationalized.

Karnataka

Mr Scindia has drawn the attention to the CM Basavaraj Somappa Bommai on the following issues that are impacting the implementation of various projects about the aviation sector in Karnataka:

KALABURAGI AIRPORT, KARNATAKA

AAI has projected land requirement of 370 acres at Belagavi airport, out of which only 348.6 acres have been handed over.Similarly, AAI has requisitioned for allocation of 240 acres at Mysore Airport. However, the said land is yet to be handed over by the State Government.The Govt. of Karnataka may take necessary steps to operationalize Shivamoga and Vijayapura airports so that the bids received under RCS-UDAN 4.1 can be considered for award. Further, the State Govt. needs to communicate its consent for 100% VGF support for the routes to be awarded from these two airports as these are part of State Regional Connectivity Scheme (SCRS).An amount of INR 7.55 Crores is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Kerala

Mr Scindia has drawn the attention of CM Pinarayi Vijayan on the following issues that are impacting the implementation of various projects about the aviation sector in Kerala:

COCHIN AIRPORT, KERALA

AAI has projected a land requirement of 152.5 acres which is yet to be handed over by the State Government.   Out of this, 137 acres will be used for development of apron, construction of new terminal building and cargo complex and remaining 15.25 acres will be used for car parking.

An amount of INR 5.29 crore is outstanding on part of the State Government as VGF share against Regional Air Connectivity Fund Trust (RACFT).

Madhya Pradesh

Similarly, while writing to CM Shivraj Singh Chouhan, Mr Scindia, underscored the following issues that are impacting the implementation of various projects about the aviation sector in Madhya Pradesh:

INDORE AIRPORT, MADHYA PRADESH

20.67 acres of land outside the airport boundary is required at Bhopal airport for relocating Bharat Scouts and Guides;20 acres of land is required at Khajuraho airport for basic strip and operational requirements;110 acres at Gwalior airport for extension of Civil Enclave;An additional 2314.52 acre of land is required at Indore Airport for development of 2nd runway and associated infrastructure.An amount of INR 1.79 crore is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).The State Government may give its consent to provide 100% VGF support for International UDAN operations on Indore – Dubai route. On receipt of the consent of State Govt. for 100% VGF support, routes will be put for bidding by the airlines.

Maharashtra

While writing to CM Uddhav Balasaheb Thackeray, Mr Scindia has highlighted the following issues that are impacting the implementation of various projects about the aviation sector in Maharashtra:

PUNE AIRPORT, MAHARASHTRA

AAI has projected land requirements of 234.21 acres at Akola airport for development of basic strip and additional infrastructure.  Out of this only 149.95 acres has been handed over to AAI. Remaining 84.26 acres is yet to be handed over. 182 acres of land is required at Aurangabad airport for runway extension and Parallel Taxi track for making it suitable for operation of Code “E” type of aircraft. 47.60 acres of land is required at Gondia airport for diversion of village road and city side development. 64 acres of land is required at Kolhapur airport for runway extension and installation of approach lights for development of airport for operation of AB-320 type of aircraft.An amount of Rs. 95 crore has been allocated for development of Amravati and Ratnagiri airports. The airports need to be developed by the State Government for commencing RCS – UDAN operations.Removal of chimney at Solapur may be considered at the earliest, so as to connect Solapur airport under RCS – UDAN.An amount of INR 12.02 crore is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).State Govt. may give their consent to provide 100% VGF support for International UDAN operations on Pune – Dubai, Pune – Bangkok, Pune– Male, Pune – Singapore, Pune – Kathmandu and Pune – Kuala Lumpur routes. On receipt of the consent of State Govt. for 100% VGF support, routes will be put for bidding by the airlines.

Meghalaya

Shri Scindia has requested the personal intervention of CM Shri Conrad K Sangma in the expeditious operationalization of Tura Airport. He mentioned that the Ministry of Civil Aviation has launched RCS – UDAN to enhance regional air connectivity from unserved and underserved airports in the country by making air travel affordable to the masses. Tura airport figures in the tentative list of unserved airports. Bids for Helicopter operations have been received for two RCS routes i.e., Shillong to Tura Vv and Guwahati to Tura Vv in a special round of bidding 4.1 and the same is likely to be finalised soon as per the provisions of the Scheme document.

SHILLONG AIRPORT, MEGHALAYA

He has drawn the attention of Shri Sangma to the following issues:

On request of Meghalaya Government to Airports Authority of India (AAI) for taking over the Tura Airport, AAI had forwarded a draft MOU to State Government in 2013.Subsequently, for expansion and development of airport for operationalization of ATR-72 type of aircraft, AAI submitted proposal for acquisition of 56.5 acres of land and a DPR with development cost of INR 183.63 Crores to State Government vide letter dated 12.06.2017. State Government vide letter dated 18.08.2020 informed that survey is complete and process of obstacle removal is being initiated. AAI vide letter dated 18.09.2020 requested for additional information regarding existing infrastructure, land, finance, traffic demand and action plan.As per Air Safety requirement, provision of Runway End Safety Area (RESA) of 240 m x 60m is recommended and VFR operation with Simple Approach Lighting (SAPL) is proposed in Phase-1 along with City side infrastructure, runway extension. So an additional land of 68.5 acres needs to be acquired. Thus, total land area Of 125 acres need to be acquired and handed over to AAI, free from all encumbrances and free of cost, for development of Phase-I the airport.Further, for IFR operations with ILS and CAT-1 Lighting System, additional land of 115 Acre may be reserved by State Government.

Nagaland

Mr Scindia has drawn the attention of CM Neiphiu Rio on following issues that are impacting the implementation of various projects about the aviation sector in Nagaland:

DIMAPUR AIRPORT, NAGALAND

In Phase-1, land area of 107 acres is required for extension of runway by 310m for operations of AB-320 type of aircraft.In Phase-2, land area of 230 acres is required for city side development, extension of runway by 600m and runway strip clearance for operations of AB-320 type of aircraft along with hangars, RESA (Runway End Safety Area) and Isolation Bay.An amount of INR 18 Lakh, till 31.07.2021, is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Odisha

Mr Scindia has drawn the attention of CM Naveen Patnaik on the following issues that are impacting the implementation of various projects about the aviation sector in Odisha:

BHUBANESWAR AIRPORT, ODISHA

AAI has projected land requirements of 178 acres at Jharsuguda for Phase –II expansion of the Airport. The land is yet to be handed over.Jeypore and Utkela airports need to be developed at the earliest by the State Govt. for the operations of RCS – UDAN flights.An amount of INR 1.48 crores is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).State Govt. may also give their consent to provide 100% VGF support for International UDAN operations on Bhubaneswar – Dubai, Bhubaneswar – Abu Dhabi, Bhubaneswar – Bangkok, Bhubaneswar – Kuala Lumpur, Bhubaneswar – Colombo, Bhubaneswar – Singapore and Bhubaneswar – Kathmandu routes. On receipt of the consent of State Govt. for 100% VGF support, routes will be put for bidding by the airlines.

Puducherry (UT)

Mr Scindia has drawn the attention of CM N Rangasamy, on the issue of handing over land to AAI for the development of the Puducherry airport.

PUDUCHERRY AIRPORT

He mentioned that AAl has projected a revised land requirement of 161.5 acres (104 acres in the state of Tamil Nadu + 57.5 acres in the Union Territory of Puducherry) for extension of the Runway at Puducherry airport to make it suitable for the operation of ATR-72/Q-400 type of aircraft and IFR operations. However, the land is yet to be handed over to AAI by the UT administration of Puducherry and the State Government of Tamil Nadu.

Rajasthan

While writing to CM Ashok Gehlot, Mr Scindia, underscored the following issues that are impacting the implementation of various projects about the aviation sector in the state:

JAIPUR AIRPORT, RAJASTHAN

145 acres of land is required at Udaipur airport to meet DGCA CAR requirements for upgradation of runway.58.88 acres of land is required at Bikaner airport for expansion of Civil Enclave.55.9 acres of land is required at Jodhpur airport for construction of Apron and Terminal Building, AAI residential colony and CISF quarters.51 acres of land is required for development of New Civil Enclave at Uttarlai airport.Kotaand and Uttarlai airports are to be upgraded by the State Government.An amount of INR 94 Lakh is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).Consent for 100% Viability Gap Funding (VGF) for State Regional Connectivity Scheme (RCS) routes is awaited from the State Government.

Tamil Nadu

While writing to CM M.K. Stalin, Mr Scindia has highlighted the following issues that are impacting the implementation of various projects of the aviation sector in the state:

COIMBATORE AIRPORT, TAMIL NADU

93.04 acres of land is required at Chennai airport for simple approach lighting system and development of other infrastructure. However, only 5.04 acres has been handed over to AAI. Remaining 88 acres is yet to be handed over.683.11 acres of land is required at Trichy airport for runway extension,basic strip, apron, terminal building and associated infrastructure.However, only 40.93 acres has been handed over to AAI. Remaining 642.18 acres is yet to be handed over.615.92 acres of land is required at Madurai airport for runway extension, approach lighting system and other associated infrastructure. However, 528.88 acres has been handed over to AAI. Remaining 87.04 acres is yet to be handed over.627.89 acres of land is required at Coimbatore for runway extension, new terminal building, apron and associated infrastructure.697 acres of land is required for development of Tuticorin airport. Out of which 600.97 acres has been handed over to AAI. Remaining 96.03 acres is yet to be handed over.446 acres of land is required for upgradation of Salem airport.Out of a total requirement of 62.07 acres required for RCS operations at Vellore airport, 13.37 acres is yet to be handed over. Further, 441 acres of land is required for development of Vellore airport to make it suitable for operation of Code-C type of aircraft.104 acres land falling in the territory of Tamil Nadu is required for development of the Puducherry airport to make it suitable for operation of ATR-72 type of aircraft.State Government is yet to allocate land to Indian Air Force, which in turnwill provide working permission to AAI for establishment of a Civil Enclave at Thanjavur airport.State Govt. may also give their consent to provide 100% VGF support for International UDAN operations on Coimbatore - Colombo, Coimbatore Dubai, Coimbatore - Singapore, Coimbatore Kuala Lumpur. Madurai- Dubai, Madurai - Colombo and Madurai - Singapore routes. On receipt of the consent of State Govt. for 100% VGF support, routes will be put up for bidding by the airlines.An amount of INR1.92 crore is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Tripura

While writing to, CM Biplab Kumar Deb, Mr Scindia underscored the following issues that are impacting the implementation of various projects of the aviation sector in the state:

AGARTALA AIRPORT, TRIPURA

48 acres of land is required at Agartala Airport for Runway extension and relocation of Doppler Very High Frequency Omni Range (DVOR).Further, 50.5 acres of land at Kamalpur Airport and 75 acres of land at Kailashahar Airport are required for development of these airports for civilian aircraft operations (ATR 72 type aircraft).

Telangana

While writing to CM Shri K. Chandrashekar Rao, Mr Scindia has drawn his attention towards the issue of extension of the period of Concession Agreement for Hyderabad International Airport Limited (HIAL). He mentioned that a Concession Agreement (CA) dated December 20, 2004, has been executed between the Ministry of Civil Aviation, Government of India and HIAL for the development, construction, operation and maintenance of Hyderabad International Airport. In terms of clause 13.7.1 of CA, M/S HIAL has requested for extension of its concession period for another 30 years beyond the initial 30 years, i.e beyond March 23, 2038, and till 23.03.2068. The State Government has been requested to re-examine the request of HIAL for extension of the period of the Concession Agreement and furnish its recommendations to the Ministry of Civil Aviation.

HYDERABAD AIRPORT, TELANGANA

Shri Scindia also underscored the issue of operationalization of Warangal Airport and its inclusion under the Regional Connectivity Scheme (RCS)-UDAN (Ude Desh ka Aam Nagrik). He mentioned that Warangal Airport is within 150 km aerial distance of HIAL and can be developed with a mutually agreeable solution, to be explored by the State Government of Telangana with HIAL and Airports Authority of India (AAI).

Uttar Pradesh

Mr Scindia has drawn the attention of CM Yogi Adityanath, on the following issues that are impacting the implementation of various projects about the aviation sector in the state:

AGRA AIRPORT, UTTAR PRADESH

660 acres of land is required for phase wise development of Ayodhya airport.60 acres of land is required at Gorakhpur airport for development of New Civil Enclave.57 acres of land is required at Agra airport for expansion of Civil enclave at Agra.Ayodhya, Jhansi, Muirpur (Korba), Aligarh, Azamgarh, Moradabad, Chitrakoot, Saharanpur, Ghazipur and Shravasti airports are required to be developed by the State Government for commencement of RCS- UDAN operations.An amount of INR 2 crore is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

Uttarakhand

Shri Scindia has drawn the attention of CM Pushkar Singh Dhami, on the following issues that are impacting the implementation of various projects of the aviation sector in the state:

DEHRADUN AIRPORT, UTTARAKHAND

243 acres of land is required at Dehradun for Runway extension, establishment of New Terminal Building and other allied infrastructure.For development of heliports at Almora, Haldwani, Haridwar, Joshimath, Ramnagar, Mussoorie, Nainital and Dharchula, an amount of INR 8.44 crores each has been allocated. These are required to be upgraded by the State Government. An amount of INR 0.36 crore is outstanding on part of the State Government as VGF share for Regional Air Connectivity Fund Trust (RACFT).

West Bengal

Mr Scindia has drawn the attention of CM Mamata Banerjee, on the following issues that are impacting the implementation of various projects about the aviation sector in the state:

KOLKATA AIRPORT, WEST BENGAL

AAI has projected land requirement of 104.65 acres for development of the Bagdogra airport.37.74 acres of land is required for development of the Hasimara aiport for commencement of RCS operations.38.2 acres of land is required for development of Kalaikunda airport for commencement of RCS operations.There is a need for removal of obstacles at Burnpur Airport for making it suitable for RCS- UDAN operations.State Govt. may give their consent to provide 100% VGF support for International UDAN operations on Bagdogra- Kathmandu and Bagdogra - Bangkok routes. On receipt of the consent of State Govt. for 100% VGF support, routes will be put up for bidding by the airlines.An amount of INR 2.97 crore is outstanding on part of the StateGovernment as VGF share for Regional Air Connectivity Fund Trust (RACFT).Consent for payment of 100% VGF for State RCS routes on Kolkata Cooch Behar-Kolkata and Guwahati-Cooch Behar-Guwahati routes is yet to be received.

Read next

Aviation Minister urges states to rationalise VAT on ATF in 1%-4% range

Radhika Bansal

27 Aug 2021

To give impetus to air travel, Union Minister for Civil Aviation, Jyotiraditya Scindia has written a letter to 22 States/ UTs urging them to rationalize VAT on ATF across all airports in States within the range of 1% to 4%. He has asked them to take forward common intention to boost air travel and connectivity in State to accelerate its economic development.

The price of ATF is a major component of the operating cost of airlines with that, the tax on ATF contributes significantly to the ATF price. Addressing this issue would enable a force multiplier effect concerning air connectivity in states.

Citing examples of progressive states such as Kerala, Andhra Pradesh, Meghalaya, Nagaland, Sikkim and Telangana, the Minister wrote that they have brought down the VAT to 1% and even below. As a result, they have seen a substantial jump in the number of aircraft movements in their states.

The price of ATF is a major component of the operating cost of airlines with that, the tax on ATF contributes significantly to the ATF price

For example, the Government of Kerala has brought down VAT on ATF from 25% to 1%. Subsequently, the number of aircraft movements at Thiruvananthapuram airport increased from 21,516 flights to 23,566 flights in a span of 6 months ie an increase of 2050 aircraft movements post-reduction of VAT. Similarly, aircraft movements at Hyderabad saw a rise from 76,954 flights to 86,842 flights in a span of 6 months i.e. an increase of 9888 aircraft movements after the reduction of VAT on ATF from 16% to 1%. Many other states, such as Andhra Pradesh, Chattisgarh, Nagaland, Orissa, Punjab and Sikkim have followed suit.

The Minister brought to the attention of the states that air connectivity directly promotes tourism growth, output growth and employment generation, in addition to various indirect benefits to the economy. In fact, the aviation sector has a high output multiplier of 3.25 and an employment multiplier of 6.1.

Presently, there is a huge disparity between States, and even within States, in terms of VAT being levied on ATF. Given the challenges that have arisen due to COVID-19. Hence, the Minister emphasised the need to reduce the existing VAT/Sales Tax on ATF to 1%-4% at all airports with immediate effect. Besides, it is worth noting that the revenue collected by the State on account of VAT on ATF is an insignificant proportion of the overall State finances. In any case, this will be more than offset by the positive impact of the air connectivity to the State through the flow of economic activities.

The 22 states/UTs to which the Minister wrote include Arunachal Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra, Madhya Pradesh, Mizoram, Rajasthan, Tamil Nadu, Tripura, Uttarakhand, Uttar Pradesh, Jammu & Kashmir, National Capital Territory of Delhi, Ladakh, Andaman Nicobar, and Dadra and Nagar Haveli and Daman & Diu.

Read next

After Privatisation, Air India employees to vacate company accommodation

Radhika Bansal

27 Aug 2021

With the government looking to privatise Air India as soon as possible, the airline's management has been asked to ensure staff colonies are vacated, for which the Centre has set a deadline of six months from the sale. The investments made with Air India's provident funds are also set to be liquidated and transferred into the Employees Provident Fund Organisation, for which Maharaja's management has been asked to get approval from a majority of the employees.

If the money falls short of what the employees are supposed to get, the body leading the divestment - a GoM led by Home Minister Amit Shah - has decided that the government will shore up the deficit. As for the actual divestment, the government expects that to be done by the end of the fiscal, with the Tatas seemingly the frontrunners, at this moment.

With the government looking to privatise Air India as soon as possible, the airline's management has been asked to ensure staff colonies are vacated

In addition to these, the aviation ministry has set out other provisions for current and former employees of the airline:

The government will ensure that medical benefits will be available to both retiring and retired employees, with the Central Government Health Scheme being looked at as an option. Employees will be allowed to stay at the accommodation for six months post the sale of Air India or till the property is monetised, whichever comes first.

The Centre has asked the airline for the details of its employees, specifically retired employees and their spouses, as well as the staff who will turn 58 (the age for superannuation) on the date Air India, will be sold. The ministry has also asked for a list of those that turn 55 on the date or have completed twenty years of service in Air India, Air India Engineering Services and AIASL.

After 68 years of government ownership, privatizing Air India was always going to be a challenging task. The carrier has accumulated assets around the country, including offices, plots of land, and hundreds of apartment colonies. With no buyer looking to purchase all of these non-airline assets, the government must find some way to recoup the billions in debt AI owes.

This will come in the form of monetizing the assets owned by Air India. With land in Mumbai being a scarce commodity, the 184 acres in Kalani are worth exponentially more than what AI has been paying as lease rental. However, this would mean displacing 7,000 Air India employees and uprooting a massive colony that features schools, an iconic cricket ground, and much more.

Read next

DGCA allows Boeing 737 Max to fly again

Radhika Bansal

27 Aug 2021

India's air safety regulator DGCA said on Thursday it had cleared Boeing Co's 737 MAX aircraft to fly with immediate effect, ending its nearly two-and-a-half-years of regulatory grounding in a key travel market for Boeing.

On March 13, 2019, all Boeing 737 Max planes were grounded in India by the Directorate General of Civil Aviation (DGCA) after the crash of an Ethiopian Airlines 737 Max plane on March 10 near Addis Ababa which had left 157 people, including four Indians, dead.

Aircraft manufacturer Boeing has been modifying the 737 Max plane since March 2019 so that various countries’ regulators, including the DGCA, permit its passenger flight operations again.

In its order dated August 26, 2021, the DGCA stated that the operation of Boeing 737 Max planes is permitted “only upon satisfaction of applicable requirements for service return”.

A senior DGCA official confirmed that the ban on 737 Max planes’ commercial flight operations has been lifted.

The Boeing 737 Max planes were grounded globally in March 2019 after two crashes within 5 months.

The DGCA allowed Boeing 737 Max aircraft to fly over Indian airspace in April and also said foreign registered aircraft could be ferried out of the country. However, the aviation watchdog has not lifted the ban on aircraft that’s been grounded in India since March 2019.

In India, SpiceJet and Jet Airways operated Boeing Max aircraft before the ban. SpiceJet has 13 Boeing 737 Max 8 aircraft in its fleet and placed orders for 142 additional aircraft, whose deliveries were halted.

SpiceJet Ltd, India's second-largest airline by market share and the only one in the country to fly the 737 MAX aircraft, said earlier in the day it had signed a settlement with lessor Avolon on leases for the aircraft. SpiceJet has more than 100 737 MAX planes on order.

SpiceJet's B737MAX

"SpiceJet has entered into a settlement with Avolon, a major lessor of Max aircraft, paving the way for the airline's 737 MAX aircraft to start to return to service," the low-cost carrier said in the statement.

Around 175 countries have allowed the 737 MAX to return to service following a safety ban, with 30 airlines already restarting their MAX aircraft services. China is now the only major market where regulators are yet to give the MAX a go-ahead. Boeing earlier this month conducted a test flight of the 737 MAX plane in China.

Read next

The hydrogen revolution in skies

Prashant-prabhakar

26 Aug 2021

Before the Covid pandemic hit and grounded planes worldwide, aviation was said to contribute to about 3% of global CO2 emissions. As trivial as the numbers may look, they, are supposedly more than the entire emission of Germany! Also affecting rise in world temperatures is "radiative forcing"-of which CO2 is the main factor. Aviation contrails, which are basically water vapour trials from airplane wings, are another major factor contributing to the cause.

With advancements in technology and the advent of more efficient engines, CO2 emissions from commercial flights have fallen more than 50% since 1990.

How good is hydrogen over conventional jet fuel?

Hydrogen looks promising as an alternative fuel to the convention fuel used in aviation. Regardless of whether it is used to power a fuel cell for electricity generation or directly combusted for motive power, water is the only by-product produced. Hydrogen packs a lot of energy per unit of mass, making it more relevant in commercial flying.

Hydrogen is one of the most promising technology vectors to allow mobility to continue fulfilling the basic human need for mobility in better harmony with our environmentGrazia Vitaldini, chief technology officer at Airbus.

It came as no surprise then, that in Sept of 2020, Airbus unveiled Project zeroE-wherein it presented 3 concept planes which, at the time, the company proposed would enter service by 2035. Let's take a look at the models below:

1. Turboprop (propeller)Capable of carrying 100 passengers with a maximum range of 1,000 nautical miles (1,850km). The liquid hydrogen storage and distribution system would be located behind the rear pressure bulkhead.

AIRBUS

2.TurbofanCapable of carrying about 200 passengers with a maximum range of 2000 nautical miles(3,704km). Again, The liquid hydrogen storage and distribution system would be located behind the rear pressure bulkhead.

AIRBUS

3.Blended-Wing Body(BWB)Prototype with a generous wide intérior area. This opens up multiple options for hydrogen storage and distribution.Powered by two hybrid hydrogen turbofan engines, liquid hydrogen tanks would be stored beneath the wings.

AIRBUS

Also worth noting is the fact that hydrogen fuel cells generate electrical power which basically complements the gas turbine. What we now have is an highly efficient hybrid-electric propulsion system. The benefits of such a system are innumerable.

Do the benefits really outweigh the cons though?

As attractive as the benefits seems to look, not everyone in the industry is optimistic about the transition towards low/zero carbon flight.

Ariyan International Inc

Experts have propagated that although hydrogen has higher energy by mass than jet fuel, it still is lower by volume meaning it would have to be compressed to extremely low temperatures for sufficient storage. This translates to heavier and much more complex tanks for the storage of compressed hydrogen.

Chemically, the density of hydrogen is just about 1/4th that of jet fuel. Basically meaning, aircrafts may have to carry fewer passengers to make space for storage tanks or compromise on overall size.

As of today, liquid hydrogen is estimated to be twice as expensive as conventional jet fuel and will continue to remain so for the next few decades.

Our belief is that it will take a while for all the technology and elements of hydrogen propulsion to be worked out before we can get to… commercial useSean Newsum, director of environmental strategy at Boeing Commercial, recently told to the Financial Times.

So, what are the alternatives?

The Geneva-based, Air Transport Action Group is hopeful of still achieving zero CO2 emissions but only by 2050 or so.According to the group, although hydrogen would be playing a part, it would be still be marginal as compared to the use of Sustainable Aviation Fuel(SAF).

ADS group

If SAF production can be scaled up – and aviation needs 500 million tonnes a year by 2050 – we can make a huge contribution for our planetPaul Stein, chief technology officer at the engine makers Rolls Royce.

SAFs apparently have the obvious advantage over jet fuel in that they are chemically similar, can be filled into existing systems without having to redesign them thereby reducing delays and is comparitively cost-effective.

COVER: Airbus

Read next

New Flights Connecting Jamnagar Inaugurated Today

Radhika Bansal

26 Aug 2021

Union Minister of Civil Aviation Shri Jyotiraditya M. Scindia, MoS, Civil Aviation along with General Dr V K Singh (Retd.) virtually flagged off the first direct flight operations between Jamnagar (Gujarat), to Bengaluru (Karnataka) & Hyderabad (Telangana) under the RCS-UDAN (Regional Connectivity Scheme — Ude Desh Ka Aam Nagrik) of the Government of India. Shri Jawaharbhai Chavda – Minister of Tourism Gujarat, Shri Bhupendrasinh Chudasama, Minister of Civil Aviation, Gujarat, Smt. Poonamben Hematbhai, Member of Parliament, Jamnagar, alongside Shri R C Faldu, Member of Legislative Assembly (MLA), Shri Raghavjibhai Hansrajbhai Patel, MLA also graced the flag off event virtually.

Joint Secretary, Ministry of Civil Aviation, Smt. Usha Padhee along with the senior officials of the Ministry of Civil Aviation (MoCA) and Airport Authority of India (AAI) were also present at the launch of the flight operations. Operationalizing of this route expands the aerial connectivity of Jamnagar to 03 major cities of India that includes Mumbai (Maharashtra), Bengaluru & Hyderabad.

“I am happy to announce the kick-starting of regional connectivity from Jamnagar under UDAN. From today, M/s Star Air will operate first time direct flights between Jamnagar and Bengaluru including flights between Jamnagar and Hyderabad under UDAN. Jamnagar is the perfect blend of trade, cultural, and religious hubs. Moreover, I am delighted to announce that we are planning to commence 10 more additional flights from Gujarat under UDAN. The UDAN scheme envisioned by our Prime Minister Shri Narendra Modi has been a game-changer for the civil aviation sector of the country.”Shri Jyotiraditya M. Scindia, Union Minister of Civil Aviation

Jamnagar is also called the “Chhoti Kashi” due to the presence of more than 100 temples. Jamnagar is well known for its four marble Jain temples: Vardhman Shah Temple, Raisi Shah Temple, Sheth Temple, and Vasupujya Swami Temple; all built between 1574 and 1622. Furthermore, Jamnagar is also called Gateway city to one of the Chard Dhams – Mokshapuri city – Dwarka. 

The city of Jamnagar is also known as the World's Oil City due to the presence of the world's largest Oil Refining and Petrochemicals Complex near the village of Moti Khavdi & the second-largest private refinery in India located in the nearby town of Vadinar. Owing to the presence of more than 5,000 large-scale and 10,000 small-scale workshops manufacturing brass items Jamnagar was formerly termed as 'Brass City' of the country. The region records the largest production of brass items in the country.

Due to the non-availability of any direct mode of air or rail connectivity, people were compelled to spend long travel hours to reach these cities. Availability of direct flight between Jamnagar and Bengaluru will drastically cut down the travel time to 135 minutes from earlier 07 hours taken for air travel using connecting flights via Mumbai. Alternate option of road travel between these two cities also takes over 30 hours while train travel takes around 20 hours.  

Likewise, the completion of the entire journey took more than 1 day to reach Hyderabad from Jamnagar by train and road travel or vice-versa.  Due to the non-connectivity of direct flights between these two cities, it took more than 06 hours for air travel using connecting flights. Now, natives can easily fly between the two cities by opting for a flight of just 130 mins.

Star Air will be operating thrice-weekly flights on the route and will deploy its 50-seater Embraer ERJ-145 aircraft.

Star Air was awarded the above routes during the UDAN 3 bidding process. The airlines are being provided Viability Gap Funding (VGF) under the UDAN scheme to keep the fares affordable & accessible for the common people. The airline will be operating thrice-weekly flights on the route and will deploy its 50-seater Embraer ERJ-145 aircraft. The route marks the commencement of the 32nd UDAN route by the airline.

To date, 369 routes and 60 airports (including 5 heliports and 2 water aerodromes) have been operationalized under the UDAN scheme.

The flight schedule is mentioned below:

FLIGHT NO.SECTORDEPARTUREARRIVALFREQUENCYAIRCRAFT OG131 Bengaluru - Jamnagar 06:35 08:50Tuesday, Thursday & Saturday ERJ145 OG149 Jamnagar - Hyderabad 09:15 11:30Tuesday, Thursday & Saturday ERJ145 OG150 Hyderabad - Jamnagar 15:15 17:20Tuesday, Thursday & Saturday ERJ145 OG132 Jamnagar - Bengaluru 17:45 20:00Tuesday, Thursday & Saturday ERJ145

Comment