<div>Giving a push to aviation infrastructure development, Indian government is planning to build 10-15 greenfield airports and modernising 50 others in the non-metro cities over the next few years.<br /><br />"About 50 non-metro airports are being modernised within the next two years and overall 10-15 new greenfield airports are being planned," Indian civil aviation minister Ajit Singh told reporters on the sidelines of the 49th Conference of Directors General of Civil Aviation of Asia-Pacific region in New Delhi on 8 October.<br /><br />Maintaining that the civil aviation sector in India was witnessing an annual growth of nine per cent, he said, "We expect a double digit growth in air traffic in the next few years."<br /><br />Asked about the basis of his assessment, Singh said, "The huge middle class is growing, trade is growing and India should achieve at least six per cent GDP growth now. There may have been a temporary setback as we see a decline now, but air traffic is expected to grow substantially."<br /><br />This week India is set to dismantle a complex web of regulatory requirements that throttle its infrastructure growth, with plans to set up a special body to speed up projects in a sector seen as vital to reviving economic momentum. The move is the latest in a slew of big-ticket reforms by Prime Minister Manmohan Singh's government, from raising diesel prices to opening supermarkets to foreign competition, to spur growth which is at its slowest pace in nearly three years. <br /> </div><div><strong>Read: <a href="http://businessworld.in/en/storypage/-/bw/india-moves-to-dismantle-stifling-infra-controls/564190.30752/page/0">India Moves To Dismantle Stifling Infra Controls<br /></a></strong></div><div><a href="http://businessworld.in/en/storypage/-/bw/india-moves-to-dismantle-stifling-infra-controls/564190.30752/page/0"><strong><br /></strong></a>Finance Minister P. Chidambaram said the Cabinet was expected to establish a National Investment Board (NIB) this week, to speed up clearances for projects that are now bounced from one ministry to another in a process that can stretch for years and frustrates investors. Government officials say regulatory delays have held up projects worth nearly Rs 2 trillion in the road, power, coal and mining sectors alone. However, this latest reform initiative may not be the panacea for a sector hobbled by layers of bureaucracy because, despite the single-window in New Delhi, approvals could still be held up by mandarins in the states where projects are proposed.<br /><br />In what is seen as a hangover from the days of the "Licence Raj" economy of quotas and permits - which Singh helped abolish as finance minister more than two decades ago - a typical infrastructure project requires clearances from 19 central ministries ranging from environment to defence. "The idea is nothing should be held up beyond a reasonable timeframe," a senior Finance Ministry official said, when asked about the board. "You cannot just sit over it. You cannot just sit over a file."<br /><br />The government's investment reforms of recent weeks are expected to help turn around bearish investor sentiment but they may not perk up growth without a rapid upgrade to the nation's pot-holed roads and stretched power networks.<br /><br /><strong>Airports Modernisation</strong><br />Earlier Indian civil aviation minister Ajit Singh said the government had initiated a major process of modernising existing airports and developing greenfield ones "through a mixed strategy of public sector, private sector, joint ventures and public- private partnership" to accommodate the growing air traffic.<br /><br />While airports at Delhi, Mumbai, Bangalore and Hyderabad had been built with private sector participation, "new airports are ready for commissioning in Chennai and Kolkata very soon," he said, adding that the government now permits up to 100 per cent FDI in greenfield airports. <br /><br />Referring to the controversial carbon tax being imposed by the European Union (EU) which is being opposed by India and a large number of countries, the Minister said, "We would request the delegates to oppose any unilateral environment measures imposed by a State or group of States like the EU-ETS (Emission Trading Scheme)."<br /><br />He appealed to the delegates to "work with International Civil Aviation Organisation to evolve global environment protection on the basis of equity and consensus following the broad consensus obtained" in the United Nations fora.<br /><br />Observing that India was a "major corridor" between the East and the West, Singh said the final operational phase and certification GAGAN (GPS Aided Geo- Augmented Navigation) system, developed jointly by Airports Authority of India and Indian Space Research Organisation, was expected to be completed in June 2013.<br /><br />"GAGAN has a footprint overlapping with European Satellite Based Augmentation System (SBAS) on the West and Japanese SBAS on the East," he said.<br /><br />Asked whether the proposed venture of the Kerala government, Air Kerala, would be allowed to fly abroad, the Minister said like all start-up airlines, it would need to fulfil all criteria for various government approvals. "We will give sympathetic consideration (to Air Kerala) but rules and regulations have to be followed."<br /><br />The three-day conference is being attended by top global aviation officials, including ICAO Secretary General Raymond Benjamin, apart from aviation regulatory bodies of over 45 countries and six professional bodies.<br /><br />The theme of the conference is 'Managing Air Transport Growth in the Asia Pacific Region through a Collaborative Approach to Safety, Security and Sustainability', which would also review and exchange information, enhance co-ordination of civil aviation activities and harmonise and coordinate implementation of standards and procedures in the region. <br /><br />India's investment rate has fallen to 32 per cent from 38 per cent in 2007-08. Analysts say investment needs to pick up before the economy returns to the 9 per cent growth it was clocking before the 2008 global financial crisis. Poor infrastructure is a blight on the economy. Frequent power cuts, poor roads and an antiquated railway network sap the competitiveness of Indian businesses and leave hundreds of millions of people without basic utilities. In July, a collapse in three of India's five transmission grids cut power to 670 million people.<br /><br />(Agencies)<br /><br /><br /> </div>
