Civil Aviation Minister reviews Budget 2016-17

Ashok Gajapathi Raju Pusapathi, Minister of Civil Aviation small

The Minister of Civil Aviation Pusapati Ashok Gajapathi Raju welcomed the budget provisions aimed at reviving the unserved and under-served airports in the country for increasing regional connectivity. The Union Budget 2016 provides that the Central Government will partner with the State Governments to develop some of these airports and airstrips in the country. The Minister shared the action plan for revival of such airports. In the financial year 2015-16, Airport Authority of India (AAI) proposes to revive 10 non-operational airports. These airports are initially unviable and would require budgetary support from the Government. He said that Service Tax exemption under Deen Dayal Upadhyay Grameen Kaushalya Yojana will enable, firstly, training providers to set up training institutes across the country. Secondly, it will attract youth for cargo and ground handling from rural areas of the country. Exemptions for assessing bodies empanelled centrally by Directorate General of Training will also promote setting up of training institutes and attracting youth towards civil aviation sectors. About the increase of Excise Duty on Air Turbine Fuel from 8% to 14% the Minister said that the decrease in ATF base price over the last 13 months is around 25.04%. The increase in ATF prices due to increase in excise duty from 8% to 14% comes to around 6.56%. He said that the Budget 2016-17 has paved the way for developing India as a Maintenance, Repair and Overhauling (MRO) hub of Asia.

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