Civil Aviation Minister | Business Upturn

Air India, TASL, and Karnataka government forge INR 2300 crore aerospace deal

Matrika Shukla — Wed, 21 Feb 2024 10:06:31 +0000

Air India Ltd. and Tata Advanced Systems Limited (TASL), in collaboration with the Government of Karnataka, have committed a combined investment of INR 2300 crore into the state’s aerospace and defence sector. This significant Memorandum of Understanding (MoU) was officially signed in the presence of notable dignitaries, marking the beginning of a promising era of partnership and economic development.

As per the MoU, Air India will take the lead in setting up Maintenance, Repair, and Overhaul (MRO) facilities at Kempegowda International Airport Bengaluru, a notable advancement in India’s aviation infrastructure. These facilities will prioritize Airframe Maintenance for both Wide-Body and Narrow-Body aircraft, incorporating thorough checks such as heavy structural inspections. This initiative is expected to create more than 1200 highly skilled job opportunities in Karnataka, reinforcing the state’s status as a pivotal centre for aerospace innovation.

Concurrently, TASL’s investment will drive multiple initiatives, including the establishment of an Aircraft Modification, Conversion, Completion, and MRO facility tailored for defence applications. Moreover, TASL intends to set up indigenous gun manufacturing and barrel manufacturing facilities, alongside launching R&D projects in the aerospace and defence domains. These endeavours are poised to generate more than 450 highly skilled employment opportunities, nurturing a dynamic ecosystem of innovation and progress.

The collaborative endeavour has received accolades from both governmental and industry figures. Honourable Chief Minister Shri Siddaramaiah has voiced his excitement for the partnership, highlighting its pivotal role in elevating Karnataka’s aerospace industry and expanding job prospects, consequently bolstering the state’s economic prosperity.

Minister for Large and Medium Industries and Infrastructure Development, Shri. MB Patil has lauded the alliance as a momentous stride for Karnataka’s aerospace and defence sector, underscoring the state’s dedication to nurturing innovation, fostering economic growth, and facilitating job creation.

Industry leaders echoed the sentiments of government officials, underlining the strategic significance of the partnership. Mr. Campbell Wilson, CEO & MD of Air India, emphasized the agreement’s alignment with Air India’s vision of becoming a premier airline and delivering superior travel experiences to passengers. Meanwhile, Mr Sukaran Singh, CEO and MD of TASL, underscored the partnership’s contribution to enhancing India’s industrial growth and skill development capabilities.

Mr Hari Marar, MD and CEO of Bangalore International Airport Limited (BIAL) praised the collaboration as transformative, consolidating Bengaluru’s position as a prominent aviation hub and aligning with the government’s vision to cultivate numerous aviation hubs throughout the nation.

The partnership between Air India, TASL, and the Government of Karnataka represents a significant leap forward in advancing the aerospace industry, fostering innovation, and driving economic growth across the region. With Kempegowda International Airport emerging as a key hub for South and Central India, supported by substantial investments in infrastructure, the vision is to position Karnataka as a powerhouse in the aerospace and defence sectors.

In alignment with the objectives of the Civil Aviation Ministry, this collaboration has the potential to elevate India into a vibrant aviation hub, creating up to 25,000 indirect job opportunities, stimulating economic activity, and strengthening the supply chain for over 200 SMEs in the state.

Government announces 50 new flight routes under Udan to be implemented in next 100 days

News Desk — Thu, 09 Sep 2021 12:10:58 +0000

On Thursday, Jyotiraditya Scindia Minister of Civil Aviation declared a 100-day plan for India’s civil aviation infrastructure to get improve including policy measures and the development of airports as well as heliports.

Today, the Minister at a press conference Aviation ministry said, 100-day (till November 30, 2021) plan includes; the start of construction at 4 airports – Kushinagar, second terminal building at Dehradun, Agartala airport, and Jewar in Greater Noida, in the next 100 days.

The infrastructure and policy target has been set which will get implemented by November 30, As part of the targets set for the Minister of Civil Aviation, Scindia announced that 50 new routes will be launched under the centre’s regional connectivity scheme Udan. By October out of 50 new routes, 30 new routes will be launched, Alliance Air will launch 6 new routes, IndiGo and SpiceJet will launch 4 new routes each. In addition, 4 Big Charter and Star Air will launch 8 new routes each, said the Minister.

“Have set eights targets under the policy, include Drone policy, UDAN airports, leasing capacity in India, discussion with states (VAT on ATF), IGRUA expansion, stabilized industry post-COVID to be implemented in the next 100 days,” he said.

A new policy for Maintenance, Repair, and Overhaul (MRO) activities has also been publicized. By November 30 the Ministry of Civil Aviation will begin operationalization of airports in Keshod in Gujarat, Deoghar in Jharkhand, Gondia in Maharashtra, Sindhudurg in Maharashtra, and Kushinagar in Uttar Pradesh.

Scindia said that a new airport in Kushinagar will be ready for inauguration by the end of November. The construction of new terminal buildings at Dehradun, Agartala will also be completed in the next 100 days.

VAT on ATF has been asked to be rationalized within the range of 1 percent to 4 percent by the Minister. The price of ATF on of the important component of the operating cost of airlines with that the tax on ATF. The price of ATF is a major component of the operating cost of airlines with that, the tax on ATF provides notably to the ATF price. Addressing this issue would enable a force multiplier effect with a look at air connectivity in states.

Speaking on India’s new policy for Maintenance, Repair and Overhaul (MRO) for aircrafts Scindia said, “The aviation ministry is trying to attract private investment for MRO at 8 airports.”

Pre-COVID level normalcy to return next year, says Union Minister Hardeep Puri

Aryan Jakhar — Fri, 04 Jun 2021 08:18:11 +0000

Union Minister of Civil Aviation Hardeep Singh Puri on Friday showed confidence and ruled out the calculation of several airline companies and aviation experts, which stated about normalcy in the aviation sector will return in 2023. He rather expects it to happen much earlier. While talking to ANI about normalcy in aviation, Puri said Indian aviation will be back to normalcy after all countrymen are vaccinated in 2021.

“We respect experts’ opinions. But in pre-Covid level 4 lakh passengers used to travel in a day. When we started domestic civil aviation on May 25, 2020, on day one there were 30,000 passengers, which increased to 3 lakh 13 thousand till the second wave hit our country. It may have touched four lakh passengers per day and normalcy may have returned but I believe that normalcy will be returned by 2021 after all Indians are vaccinated,” Puri told ANI.

In the midst of the pandemic and the COVID second wave, the aviation sector is hit very badly and the passenger load factors have hit a recorded low.

“When the second wave came and this passenger traffic came down to 40,000 last week. On Thursday it increased to 80,000 and later it will continue to increase with the decline in COVID cases,” said the Union Minister.

The Union Minister emphasised the positivity rate of COVID cases in Delhi and provided the data. “Delhi’s positivity rate is 0.6 per cent and recovery rate is also 90-92 per cent and the mortality rate is also low. This means if you test more than 100 people you only find one person positive,” Puri added.

Puri has always advocated for easing restrictions in aviation sectors to see how the virus behaves. “I believe before the second wave of Covid, the aviation sector was about to touch 4 lakh passengers a day as we handled 3 lakh 13 thousand passengers before the second wave starts,” he added.

The government has issued orders regarding the sudden change in the number of COVID-19 cases in the second wave, and reduction in passenger numbers and reduction in occupancy by reducing the existing capacity from 80 per cent to 50 per cent.

Civil Aviation Minister Hardeep Singh Puri announces 100% disinvestment of Air India

Nitin Anand — Sat, 27 Mar 2021 16:03:51 +0000

On Saturday, March 27 , Union Civil Aviation Minister Hardeep Singh Puri stated that Air India will be 100% disinvested and also added that choice is only between closing down the airline company or making disinvestment in the company.

Hardeep Singh Puri said, “We have decided that Air India will be 100% disinvested. The Choice is not between disinvestment and non-disinvestment, it is between disinvestment and closing down. Air India is a first-rate asset but has an accumulated debt of Rs 60,000 Crore. We need to draw the slate clean.”

He also added the debt-ridden national carrier “must find a new home.” Puri added that disinvestment process is likely to be completed by May or June.

Aviation Minister also spoke to news agency ANI, “In the last meeting which was scheduled on Monday, it was decided in the meeting that the shortlisted bidders for Air India disinvestment will be informed that the bids have to come in within 64 days. And also this time the government is determined and there is no hesitation.”

In the last meeting, on Monday, it was decided that the shortlisted bidders (for Air India disinvestment) be informed that the bids have to come in within 64 days…This time the Govt is determined and there is no hesitation: Civil Aviation Minister Hardeep Singh Puri pic.twitter.com/rlJirhxckh

— ANI (@ANI) March 27, 2021

In 2018, the government has expressed interest to sell 76 per cent stake and management control in the airline but it did not receive a single bidder. Currently, government owns 100 per cent stake in Air India. However, the government has now decided to sell off 100% of its stake as the airline is in debt of 60,000 crore.

The new owner of Air India will be taking on a fleet of 121 aircraft in Air India’s fleet and 25 planes in Air India Express’ fleet.

Passengers breaking safety protocols to put into ‘no-flyers’ list by airlines: Civil Aviation Minister

Shreejit Shelar — Sat, 27 Mar 2021 10:29:57 +0000

The government of India has adopted necessary measures to curb the spread of Coronavirus, leading to the suspension of flight services. Civil Aviation Minister Hardeep Singh Puri on Saturday said that the ministry has no intention of curtailing the flight services, and aims at opening it 100% when the summer schedule begins from 1st April, reported news agency ANI.

“No intention of curtailing (flight services). Domestic flights were halted in March (2020) & resumed on 25th May, we’ve been further reopening it. The only intention was to open it 100% when the summer schedule begins from 1st April. We are at 80% right now,” Civil Aviation Minister Hardeep Singh Puri.

The Aviation minister also reflected upon the second spike of COVID and mentioned the aviation department’s plans to curb the spread of the deadly virus.

We can't open it 100% now due to the second spike of COVID…I've told the airport operators & airlines to put into no-flyers list such passengers who are not wearing mask and not maintaining social distancing norms: Civil Aviation Minister Hardeep Singh Puri

— ANI (@ANI) March 27, 2021

“We can’t open it 100% now due to the second spike of COVID…I’ve told the airport operators & airlines to put into no-flyers list such passengers who are not wearing mask and not maintaining social distancing norms,” added Mr Puri, quoted by news agency ANI.

India recently witnessed a surge in the novel coronavirus cases and the government has urged the masses to follow the Covid-19 protocol. However, on Friday, Puri reportedly said that the airport authorities have been directed to put passengers on the ‘no-fly’ list if they do not follow the SoPs and guidelines to curb Covid-19.