<p>The government is set to announce a new aviation policy shortly to boost growth and ease business in the sector minister for Civil Aviation Ashok Gajapathi Raju said at a conference on “Aviation Day” on Tuesday (14 July). Speaking at the event organised by CII in partnership with the Ministry of Civil Aviation and IATA, Raju said that while all measures will be taken to ease the investment climate, there is an equal need for rules and regulations as well. “There is a need for rules but rules and regulations but they will not be kept just for the sake of rules,” the minister said.<br><br> Elaborating on the new aviation policy that is expected to be taken up by the cabinet shortly, Secretary Civil Aviation R N Choubey said that the aviation policy would look at three major pillors- reducing cost of acquisition of aircrafts and airports and working with states to moderating taxes on ATF at the state level. “We are working to see that all states can bring down the VAT rates to 4 per cent on ATF; This is crucial as India has to import crude oil and moderate fuel prices are a key component to making the industry competitive,” he said.<br><br> Earlier, Raju, asserted that regulations are here to stay, but rules will have to be amended for the growth of the sector. Different countries have experimented with different regulations as each country is unique in its market structure and design. India, which is known to be complex market, will have to borrow ideas from different markets and will have to modify these Ideas as per requirement to ensure growth of the aviation industry.<br><br> The minister emphasized that Industry, Government of India and the States Government will have to work together to drive India’s emergence as the 3rd largest Global Aviation Market. The Government, he said, is committed in its resolve to ensure ease of doing business and is moving in that direction.<br><br>Sanjay Reddy, Chairman, CII National Committee on Infrastructure & Vice Chairman, GVK Power and Infrastructure in his introductory remarks emphasized on the need for a healthy aviation industry. The aviation sector in the country needs to be made a profitable business venture, as huge amount of capital is required to support future growth of the sector. Currently, Indian aviation industry is growing at an average growth rate of 13 – 15%, while at the same time certain parts of the country is witnessing a growth rate of as high as 30%. Success, he said, lies in collaborative approach and suggested that Ministry of Civil Aviation could form a Committee having all stakeholders including Airlines and Airports to work together and make India the 3rd largest aviation market in the world.<br><br><br><em>ashish.sinha@businessworld.in </em></p>
