State government plans to set up airports in Tier-2 cities

Published: 13th February 2013 11:02 AM  |   Last Updated: 13th February 2013 11:02 AM   |  A+A-

The state government is coming up with its own civil aviation policy, (CAP) to encourage civil aviation industry in the state and define parameters for development and expansion of the existing airports and related industries.

CAP, discussed at a highlevel meeting chaired by chief minister N Kiran Kumar Reddy here Tuesday, is aimed at encouraging the development of the civil aviation industry to achieve a balanced growth in economy in all regions of the state.

The CAP envisages development of airports in Tier-2 cities of the state, facilitate development of allied civil aviation activities such as aviation training, aviation clubs, adventure sports, maintenance, repair and overhaul (MRO) etc.

The policy envisages private sector participation by ensuring economic viability of airports, attract airlines to provide connectivity to airports in the state, create framework for offering state support and incentives to achieve these objectives, promotion of helicopter service and heli-tourism.

The state government will liaison with ministry of civil aviation to ensure provision of all the essential services such as navigation aids, ATC etc and for clearances from defence, home affairs and environment and forests, Bureau of Civil Aviation Security (BCAS) and Indian Meteorological Department.

Officials said financing gaps, if any, could be bridged through the viability gap funding scheme from the Central government, which provides for a capital grant of up to 20 per cent of the project cost.

In addition, state will provide additional financing up to 20 per cent of the project cost. Other incentives from the state include municipal tax reimbursements, attractive VAT/ST rates, road connectivity to potential location of civil aviation infrastructure, utility connections to the site, single window clearance etc.

A dedicated cell would be created in the Infrastructure & Investments Department for monitoring the policy. It was also proposed to establish an overseeing board under the chairmanship of the chief minister.

The board shall have representation from the state cabinet along with the chief secretary and secretary of the department.

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