Centre asks TN to reduce VAT levied on air turbine fuel

Union Aviation Minister urged TN government to reduce the value-added tax (VAT) levied on air turbine fuel from 29 per cent to 1 cent so that airfares could be reduced.
Image used for representational purposes only. (Express Illustrations)
Image used for representational purposes only. (Express Illustrations)

CHENNAI:  Union Minister of Civil Aviation Jyotiraditya Scindia on Saturday urged the Tamil Nadu government to reduce the value-added tax (VAT) levied on air turbine fuel from 29% to 1% so that airfares could be reduced. He also urged the state govt to help acquire 200 acres of land for the expansion of the Chennai airport and enhancing its capacity to serve 55 million passengers per annum.

He was speaking after inaugurating the multi-level car park (aero hub) at the Chennai International Airport. The minister also said his ministry was in discussion with the Tamil Nadu Industrial Development Corporation and was examining the project proposal for a greenfield airport at Parandur near Chennai. He said his ministry would issue the 'site' and 'in-principle' approval through the Airport Authority of India and the Directorate General of Civil Aviation.

"DGCA and AAI have to look into the proposal for a new airport to see if there are any obstacles on the flight path from a safety and security angle," he said. On the protest by villagers in Parandur opposing the project, he said the question has to be answered by the state government.

The land acquisition process would further delay the airport expansion plans of Chennai, Madurai, Thoothukudi, Tiruchy and Coimbatore as the union minister said the work would start only if the entire land required for the expansion has been acquired.

He said the planned expansion plan of Chennai airport to cater to 55 million passengers can happen only if 200 acres of land get acquired. This is required to make Chennai the foremost hub of civil aviation after Delhi and Mumbai, he said.

Similarly, 512 acres of land is required in Tiruchy to increase the runway length to facilitate the landing of wide-bodied aircraft. "In Madurai, we have asked for 633 acres. Of that, 540 acres have been acquired. If the balance of 90 acres is transferred to us, the work can commence. In the case of Coimbatore, a total of 630 acres is required. In Thoothukudi, the expansion requires 700 acres of which 604 acres have been transferred. But the remaining 96 acres need to be transferred so that we can build the new terminal building in 30,530 square metres of land at a cost of Rs 175 crore," the minister said.

He said Chennai will increase its capacity to 35 million passengers per annum in the next two years with the completion of the second phase of Chennai airport. "Stage-1 will be over by March this year and the second phase by the end of next year, he said.

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