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Aviation policy to be split

September 19, 2003 10:33 IST
By BS Corporate Bureau in Mumbai

The ministry of civil aviation has decided to split the civil aviation policy into two parts.

The first part will dwell on privatisation, role of private sector airlines, guidelines regarding foreign direct investment in domestic airlines, participation of foreign airlines in the domestic aviation sector, airports policy, route network and connectivity, fares and pricing. The second will explicitly deal with policy implementation and other related issues.

Civil aviation secretary K Roy Paul said the first part of the policy would be rolled out in October and the second in November. "We are also evaluating the possibility of setting up independent regulatory bodies for airports and airlines that would deal with issues relating to pricing and competition," Paul said.

 According to the draft report, the new aviation policy is aimed at a competitive environment to ensure safety and security measures in line with global standards. Besides, it will also look into the growth of air transport.

The policy, according to the ministry, will ensure a level playing field for private and public sector operators.

Meanwhile, the government has appointed a five-member committee, headed by the former cabinet secretary, Naresh Chandra, to evolve a roadmap for the civil aviation sector that will form the basis of the new policy. Paul addressed an air-transport conference organised by the Ficci's western region council.

He said the Supreme Court judgment on divestment of Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd will not have any bearing on the privatisation of the New Delhi and Mumbai airports.

A clear-cut policy on the privatisation of nine other airports will emerge in the next few days. Regarding the privatisation of the New Delhi and Mumbai airports, the ministry will invite expressions of interest in the next couple of months. This will be followed by the selection of the partner in eight months.

The management control will be handed over to the new partner while security and air-traffic control would be retained by the Airports Authority of India.

BS Corporate Bureau in Mumbai

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