Decrying connectivity problems bogging many airports in the country especially in Bangalore and Hyderabad, Union Civil Aviation Minister Praful Patel on Friday said his ministry has convened a meeting with state governments to discusses issues relating to infrastructure and taxation here on January 18.

Addressing a gathering to announce holding of ‘India Aviation 2008’ at the Begumpet airport in Hyderabad from October 15 to 18, Patel said there was a need for the states to reduce taxation on aviation turbine fuel [ATF] and indicated that this was one of the main issues why he wanted the states to be involved in the discussions.

ATF forms 40 per cent of input costs of an airline and is the deciding factor for the fares charged. Underlining that there was a need for the states to reduce sales tax on ATF which he has been pleading for the last few years, which would in turn force the airlines to reduce fares and tariff on cargo, Patel said if the states did this, they would be in an advantageous position to attract more people. “The States have to be more reasonable with their taxes – the increase in volumes would compensate if taxes were lowered. They have a significant role to play in ensuring a greater growth in the aviation sector.

The Hyderabad and Bangalore airports are ready and will get operational by March this year, but the related infrastructure like multi-modal activities and connectivity with the city are still not in place properly”. The minister also noted that he would meet Finance Minister P Chidambaram shortly to impress upon him to reduce excise duty on ATF [although Patel has been demanding this, the finance ministry has not really bothered to look into this issue]. He said he would also raise the issue of service tax levied on first and business classes of Indian carriers flying abroad which is not applicable to foreign airlines.

Heliports in metros

The Minister announced that the year 2008 would be the ‘Year for the Helicopters’ and the next focus area would be helicopters and seaplanes. He stressed upon the need of building Heliports especially in crowed cities like Mumbai and Delhi. Seaplanes, he said, had immense possibilities with India’s large coastline.

They have a huge potential for added connectivity, which is required in this country. On the Hyderabad air show, Ministry joint secretary Arun Mishra said his ministry wanted to hold sector-specific exhibition  focussing on civil aviation in India as so far those concerned had to visit air shows in Paris, Dubai, Frankfurt and Singapore to participate.