Govt working on new civil aviation policy: Zaidi

The Civil Aviation Ministry is working out a new policy to factor in needs of the fast-growing sector over the next ten years. This was announced by Civil Aviation secretary Nasim Zaidi.

“We have about five months to complete the process,” he said here while inaugurating the conference titled ‘Air Cargo as Engine of Economic Growth’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The new policy will encourage private sector investments and lay emphasis on setting up an air cargo promotion board, Zaidi said. With GDP growing annually at nearly eight per cent, the air cargo industry has been averaging annual growth of 12 per cent.

The total cargo handled by Indian airports in 2010-11 was 2.33 million tonnes, up from 0.5 million tonnes in 2005-06. While the domestic cargo is expected to increase from 0.8 million tonnes to 1.7 million tonnes by 2016-17, the international cargo traffic is projected to move up from 1.5 million tonnes to 2.7 million tonnes in the same period.

Operationalising Air Frieght Stations Mumbai & Chennai

The air freight stations at Mumbai and Chennai will be operationalised soon to keep up with the booming traffic, said Zaidi. “We need to decongest cargo terminals with simplification of customs procedures, greater use of mechanised handling and speedy clearances of shipments. India has the potential to emerge as a global trans-shipment hub,” he said.

Najib Shah, chief commissioner at the Central Board for Excise and Customs, said authorities have put in place a risk management system for self-declaration by exporters. Efforts are being made to upscale infrastructural facilities and reduce dwell time.

While K. Narayana Rao, chairman of ASSOCHAM Civil Aviation Committee, called for reducing transaction costs with technological improvement like paperless e-enabled transactions, improving systems, processes and technology, developing common IT platforms covering all stakeholders for speedy flow of information.

“We must have modern integrated cargo terminals, cargo villages, automated storage and rack systems, cold chain facilities to support pharmaceuticals and perishable cargo,” Rao said.

ASSOCHAM Secretary General D.S. Rawat said in his message cargo services are set to chart a new course with domestic and foreign airlines expanding their networks and capacities after the government raised foreign direct investment limit in cargo airlines from 49 to 74 per cent.

As the key infrastructure sector expands to keep up with rising passenger and cargo traffic, investments of Rs 1.5 lakh crore will be required in the next 15 years. India’s scheduled airlines have 430 planes now. According to a recent ASSOCHAM study, this figure is likely to go up to 1,500 by 2025.