Finance Minsiter Nirmala Sitharaman on Saturday while detailing the fourth tranche of the Rs 20 lakh crore economic package to revive the economy announced that restrictions on the utilisation of Indian Air Space will be eased so that civilian flying becomes more efficient.
She also said that six more airports will be auctioned to private players, which will bring a total benefit of Rs. 1000 crores per year for the aviation sector. “This will bring in optimal utilization of airspace and reduce fuel costs and flying time,” Sitharaman said.
Announcing the fourth tranche of economic stimulus, she said only 60 per cent of Indian airspace is freely available. More air space available would reduce travel time and save on fuel, she said.
The finance minister said six more airports will be auctioned for private participation. Also, an additional investment of Rs 13,000 crore will be made by private players in 12 airports auctioned in first and second rounds.
She also said tax regime for aircraft Maintenance, Repair and Overhaul (MRO) has been rationalised.
Aircraft component repair and airframe maintenance are expected to increase from Rs 800 crore to Rs 2,000 crores in three years, she added.
The finance minister also announced that the government has decided to give the private sector a role in India’s space programme, including in satellites, launches and space-based services. For boosting private participation in space activities, government will provide level playing field for private companies in satellites, launches and space-based services.
Also, the government will provide predictable policy and regulatory environment to private players, she said while announcing the fourth tranche of the economic stimulus package. Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
Future projects for planetary exploration and outer space travel would be open for private sector, she said, adding liberal geo-spatial data policy will provide remote sensing data to tech-entrepreneurs.