Sinha's budget to boost civil aviation sector
The Union Budget for 2002-03 has a number of measures for the revival of the domestic civil aviation sector, which is currently reeling under the global slowdown.
The major step was exemption of customs duty on import of aircraft, helicopters, gliders, aircraft simulators and their parts and raw materials.
An airline official said the exemption of the current three per cent customs duty would bring down the price of an aircraft by about Rs 60 million.
"This would lead to huge savings, especially for Indian Airlines and Air India," the official said.
Also, the international airports in Delhi, Kolkata, Mumbai and Chennai are to be upgraded to world-class standards by inducting private sector management and investment through long-term leasing contracts.
Finance Minister Yashwant Sinha said the private sector would be encouraged to participate in greenfield airport projects through a package of concessions, which would specially benefit airports at Hyderabad and Bangalore.
Besides, the reduction of import duties on specified equipment for airports to 10 per cent is also expected to encourage improvement in the standards of facilities at airports.
The exemption of Inland Air Travel Tax on northeastern states is likely to boost air traffic to this sector.
PTI
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