Kinjarapu Rammohan Naidu, 36, is one of the youngest ministers in the current government, managing the high-profile civil aviation ministry. He is a three-time MP. There have been numerous developments in the sector, including a bill introduced on August 9 that seeks to repeal the Indian Aircraft Act, which has been amended 21 times. Excerpts:
Naidu: The bill, Bharatiya Vayuyan Vidheyak 2024, was my first after becoming a minister during the first Budget session. We introduced it, passed it in the Lok Sabha. It was already approved by the cabinet before I took charge of the ministry.
One of the key reasons for introducing a new version of the bill — I’ll call it a new version because we’re repealing the old one and reorganising its sections — is that after amending the old bill 21 times, its structure became fragmented and unclear. We often didn’t know how many sections there were or why they were included.
Aviation, from a global perspective, requires adherence to certain international standards. The International Civil Aviation Organization (ICAO), a United Nations agency, has often advised us to re-examine our existing Act, make it more organised, and integrate rules and regulations into the principal Act to strengthen our civil aviation framework.
This feedback from international organisations prompted us to rethink the Act. We decided to redesign it, addressing the challenges and restructuring it to better define the powers of important bodies like the DGCA, BCAS, and the Aircraft Accident Investigation Bureau, along with the ministry itself.
Another significant aspect was creating a new definition for civil aviation in the country. We introduced definitions in the bill, such as “design” which is crucial as we aim to improve our manufacturing sector and become self-sustainable under the Make in India initiative.
Currently, we have up to 1,050 aircraft on order. Indian-registered airlines are purchasing these aircraft, but they are being sourced from international companies like Boeing or Airbus. Why shouldn’t we build our own aircraft? If we want to, we must start with design. By defining “design” in our legislation, we’re taking a step towards establishing India as a state of design, following international practices.
We have also defined “maintenance,” which is essential for aircraft operations, covering the MRO (maintenance, repair, and overhaul) sector and manufacturing. We felt that integrating these aspects into the principal legislation was necessary to create a foundation for future growth in these areas.
We also sought feedback from pilots, particularly those undergoing training. They suggested streamlining the process for obtaining the radio telegraphy licence, which is currently issued by the Department of Telecom. This process, which involves obtaining a licence from one department and then returning to us for another, has become cumbersome. We’ve addressed this by integrating the process into a single window within the ministry.
As the civil aviation minister, my priority is to make it more people-centric. It must ultimately serve the nation’s citizens. That’s the guiding principle I want to drive in this ministry.
The most visible issues, such as ticketing, airport operations, and airline management, are just the tip of the iceberg. There is a vast array of activities in the industry that often go unnoticed or are not widely discussed. For example, drones are a part of the civil aviation industry and are one of the fastest-growing sectors globally, offering solutions to many of the country’s current challenges, particularly in agriculture. If drones can be used for tasks like spraying fertilisers or pesticides, they could significantly reduce labour costs.
We are also looking at seaplanes as a potential mode of transportation. Despite previous attempts, seaplane connectivity didn’t take off, but we’re revising the policy and encouraging stakeholders to build a seaplane network across the country.
HAL and NAL are key players, especially given their experience in defence. The goal is to apply this experience to civil aviation. If they can manufacture aircraft for defence, with some modifications, these could be adapted for civil aviation use. We are in talks, and I believe that with the right policy-making and support from the ministry, this can be achieved.
Shahid Faridi: Where will you find the buyers? Indigo and Air India have already placed large orders for aircraft, so even if we manufacture planes, who will buy them?
Our goal in manufacturing aircraft is not just to meet domestic demand but also export them. If we’re buying from Airbus, why shouldn’t other countries buy from us?
Dipak Mondal: Are you considering domestic players for this manufacturing, or are you looking at int’l collaboration?
The government’s primary focus is on encouraging local players, in line with the Atmanirbhar Bharat initiative. However, aircraft manufacturing requires precision engineering. If our domestic industry cannot achieve the necessary precision, we will need to collaborate with international industry leaders. But the priority will be given to Indian companies.
Dipak Mondal: Do you have any local companies in mind that could help?
It’s still early to name specific companies, but this is an idea that will gain strength in the coming days. Progress is being made, with HAL and NAL already working on aircraft and helicopters. We are exploring how to convert defence projects into commercially viable products, and we are seeing which industry players might be interested in joining this effort.
Santwana Bhattacharya: So, you’re saying that even though major orders have been placed, there will still be opportunities for growth?
Yes; and another important area is the trainer aircraft segment. We’re open to international players setting up manufacturing units here.
Santwana Bhattacharya: You are open to the idea of other international players to come and set up manufacturing units here.
Absolutely. Precision engineering is critical, and we have already encouraged Boeing and Airbus to set up factories in India for aircraft components. Their presence here brings not just manufacturing but also knowledge transfer, which can benefit the entire industry. When they establish a base here, it often leads to the development of ancillary industries.
Santwana Bhattacharya: You studied engineering at Purdue. Do we have the skilled manpower needed in India, particularly in engineering schools?
From my personal experience, I believe we have the talent. Indians are already working in top manufacturing industries worldwide, whether in tech, hardware, or mechanical engineering. The key is to create the right environment for them to work here. The major push needed is in R&D, which is why we’ve emphasised design in our Act. Research and design are critical for retaining talent and preventing brain drain.
Yeshi Seli: What about air taxis which have been discussed for a long time?
One significant technology update we’re receiving is regarding EVTOLs (Electric Vertical Takeoff and Landing vehicles). These operate using drone technology but are much larger and can transport 2-8 people, depending on the size. This technology is currently in the prototype stage. Our approach is to move ahead slightly in the policy-making process. We are observing how the rest of the world is dealing with EVTOLs, air taxis, and other similar technologies.
Dipak Mondal: Do you think there is a concern that India is becoming a duopoly in terms of civil aviation market share, with only two major players holding 90% of the market?
The issue is that buying an aircraft is a significant investment, and it isn’t easy. Those who entered the market early certainly have an advantage. There are some big players in the industry, but I wouldn’t say it’s a monopoly because many others are interested in entering the market. There are smaller companies running routes with three or four planes, and these models are also being explored. We offer the same opportunities to everyone. If someone new comes with a fleet of planes, we will support them fully.
Monika Yadav: When will we see ATF come under the GST ambit?
There hasn’t been any discussion on this, but reducing VAT on ATF would benefit passengers by lowering prices. However, decisions on GST are made collectively by the GST Council and states.
Yeshi Seli: There’s the issue of price caps for passengers during peak seasons.
We are discussing this with airlines. In emergencies or disasters, we strongly want to keep prices reasonable.
Santwana Bhattacharya: What are the plans for Amravati? How are you supporting the development of new airports in your state and Telangana?
Chandrababu Naidu’s vision for Andhra is remarkable. We are planning new airports in four areas of the state and improving the existing ones. We are closely coordinating with the state government to meet these goals. We are confident that these airports will be sustainable over the long term.
Santwana Bhattacharya: Are you being partial towards Andhra?
No, we are also planning five new airports in Telangana.
Rakesh Kumar: With so many new airports, do we have enough players?
Demand for air travel is growing, and as more people become accustomed to it, the market will continue to expand.
Rakesh Kumar: But it is still expensive…
I encourage you to compare prices globally. Our airfares are competitive.