The Hindu Business Line : `Lack of air cargo space hampers farm exports'

Mr Praful Patel, Union Minister for Civil Aviation, with Mr Sandeep Bajoria (left), Chairman, Central Organisation of Oil Industry & Trade, All India Cottonseed Crushers' Association & Globoil India Organising Committee, and Mr Dinesh Shahra, Chairman, India Vegetable Oil Processors' Association, at the Globoil India 2005 conference in Mumbai on Saturday. — Paul Noronha

Mumbai, Sept 24,

THE Civil Aviation Minister, Mr Praful Patel, said on Saturday that shortage of air cargo capacity has hindered export of agricultural produce.

" Indian agriculture exports are suffering due to lack of cargo space on aircraft. There are no cargo handling facilities and cold storage to support this industry,'' Mr Patel told journalists at a conference on vegetable oil.

He acknowledged that cargo handling and infrastructure related to movement of goods into the country and outside is quite inadequate

He said Air India and Indian Airlines, in a bid to facilitate freight movement, are converting old aircraft as cargo carriers.

"Indian Airlines is in the process of converting five old aircraft as freighters. Air India is also doing the same,'' Mr Praful Patel said.

"I was shocked to learn that India does not have any cargo aircraft. As India integrates with the world economy cargo movement is assuming large proportion. We have to facilitate cargo movement,'' he said. Both Air India and Indian Airlines are setting up separate divisions for cargo, Mr Patel said at a news conference at the end of the inaugural session of a vegetable oil conference, Globoil India 2005.

The airlines are also looking at leasing aircrafts for cargo operations, Mr Patel said.

"An integrated multi-modal cargo hub is being set up in Nagpur under the Ministry of Civil Aviation, he said.

The Nagpur hub would be managed by a company set up by the Maharashtra Government and would include Central Government participation too.

The State Government is in the process of acquiring land.

The two state-run airlines are likely to enter the capital market early next year to raise funds. The airlines are in the process of appointing advisers for the IPO, the Minister said.

Currently, the Ministry is in the process of work relating to the upgradation and modernisation of airports in the country to handle the upcoming surge in air traffic.

"The upgradation of modernisation of 30 non-metro airports would cost around Rs 10,000 crore. The time frame for this project is until 2009,'' he said.

A techno-economic feasibility study is currently on for the proposed airport at Navi Mumbai.

A decision on this project would be taken up after the upgradation and modernisation of the Mumbai airport, he said.

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