By IANS
Hyderabad : India plans to develop 400 to 500 airports in the next 10-12 years and a new infrastructure policy will be announced soon to encourage development of new airports, Civil Aviation Minister Praful Patel said here Tuesday.
Claiming that the growth rate of India’s civil aviation sector is the highest in the world, he said the country has the potential to utilise unused airports, including the unused defence airports.
Patel was addressing a news conference on the occasion of the first flight landing at the new international airport at Shamshabad, about 25 km from the city.
The minister said the new airport at Hyderabad was the beginning of the development of several world-class airports in India. He said while Delhi airport was being expanded, a new international airport would come up at Nagpur.
He said a new infrastructure policy to be announced soon would encourage development of new airports. “The development of airports in smaller cities and towns will promote regional airlines,” he said.
While defending the government’s decision to levy user development fee at new airports, Patel said this was aimed at providing better services to the passengers. He, however, said the fee would be subject to the review by an airport economic regulatory authority, which would soon be functional.
To a query, the minister said the existing airport at Begumpet in the heart of the city would be used for limited non-commercial operations.
Chief Minister Y.S. Rajasekhara Reddy used the occasion to announce reduction of sales tax on Aviation Turbine Fuel (ATF) from 33 percent to four percent and said the move would result in a loss of Rs.500 million to Rs.600 million to the state exchequer.
Welcoming the move, Patel said it would be an example for other states.
“By reducing the sales tax, you will have loss in the first few years but it will make up much more in terms of volume increase. Hyderabad and Andhra Pradesh will get crores of rupees of economic development, tourism and travel by attracting more flights,” he said.