Financial Daily from THE HINDU group of publications
Saturday, Nov 06, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Logistics - Airlines


CM announces sops for aviation sector

Our Bureau


Mr Ronojoy Dutta (left), President, Air Sahara, greets the Chief Minister, Dr Y.S. Rajasekhara Reddy, at the launch of the Air Sahara Hub in the twin cities on Friday. Mr Alok Sharma, Executive Vice-President, Air Sahara, is also seen. - A. Roy Chowdhury

Hyderabad , Nov. 5

A CONCESSIONAL agreement that would pave the way for the completion of the international airport on the city outskirts would be signed in 10 days.

Disclosing this here on Friday, the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, hoped an early financial closure and completion of the project as per the schedule.

Dr Reddy was addressing a press conference where Air Sahara announced creation of `Hub Hyderabad' here.

The Rs 1,200-crore airport is being taken implemented by GMR-Malaysia Airport Holdings Berhad consortium, Airports Authority of India (AAI) and the Andhra Pradesh Government.

While the Indo-Malaysian consortium held 74 per cent, AAI and Andhra Pradesh Government carried 13 per cent each in the joint venture Hyderabad International Airport Ltd. The 5,000-acre airport is coming up at Shamsabad near here. Announcing a package of incentives for the aviation industry, the Chief Minister said the State adopted a three-pronged strategy to develop the sector.

"Development of airports, increase in flight connectivity and encouragement to low-cost airlines are the three major areas," he said.

Referring to the recent hike in sales tax (ST) on aviation turbine fuel (ATF), the Chief Minister said the Government had evolved a special package that would induce airlines to operate more flights.

"Airlines that operate more than 140 flights a week will attract just 5.5 per cent ST, against the normal 30.5 per cent. Those who operate 100 to 139 flights will pay just 15.5 per cent," he said.

There will be no ST on ATF for aircraft with less than 50 seats and touching other airports excluding Hyderabad.

More Stories on : Airlines | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Air Sahara firms up plans for Asean, London flights


Fleet expansion: Air Deccan may finalise equity infusion soon
`Air Sahara to sport new look in New Year'
CM announces sops for aviation sector
Air Sahara moves to make Hyderabad its prime hub
Land for Thiruvananthapuram airport expansion
SKS Ship Q2 net up at Rs 6 cr
Rlys rider for PRCL to operate container trains
`Reclassification of iron ore, excess wagon loading will benefit zonal railways'



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line