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Govt gets Rs 5,814 cr revenue from AAI in 4 years

Lok Sabha

New Delhi: The government has received more than Rs 5,814 crore from the Airports Authority of India (AAI) in the last four financial years, Lok Sabha was informed today.

The amount has come by way of dividend, dividend tax, guarantee fees, interest on government budgetary support loan, income tax and service tax, Civil Aviation Minister Ashok Gajapathi Raju Pusapati told the Lok Sabha.

“Government has earned Rs 1,186.56 crore, Rs 1,344.13 crore, Rs 1,438.12 crore and Rs 1,845.16 crore (provisional) as revenue for the years 2011-12, 2012-13, 2013-14 and 2014-15, respectively, from the AAI,” he said in a written reply.

According to him, the domestic aviation sector has experienced phenomenal growth in recent years, resulting in increased revenue to the government.

To further enhance revenues from the sector, the Minister said various steps including development of cargo activities, revision of base rates and encouraging Maintenance, Repair & Operations (MRO) activities have been initiated.

To a separate query, he said the Ministry is in the process of finalising the civil aviation policy after taking into account various suggestions.

The measures proposed in the policy are expected to “improve cost effectiveness and increase competition,” he said in another written reply.

Among others, the policy intends to promote certain airports as international hubs. So far, the government has identified airports at Delhi, Mumbai, Chennai, Kolkata, Bengaluru and Hyderabad for development as major international hubs.

The draft civil aviation policy was unveiled by the government in November 2014.

Raju said the Ministry has requested the Finance Ministry to reduce the “burden of service tax on MRO work and state governments to reduce VAT (Value Added Tax) on aircraft parts to reduce overall maintenance charges of aircraft”.

In response to another question, the Minister said the government proposes to frame new domestic flying credits (DFCs) rules. “The guidelines are at formative stage in consultation with stakeholders including Federation of Indian Airlines (FIA),” he added.

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