New Delhi: In a major push for aviation reforms, the Union Cabinet on Wednesday gave the go-ahead to India’s first-ever civil aviation policy since Independence.
Prime Minister Narendra Modi tweeted that the “Civil Aviation Policy gives an impetus to affordability, regional connectivity, safety, infrastructure, which is vital for transforming India”, adding that it would “transform the sector and greatly benefit passengers”.
The government wants the number of air tickets sold annually rising from 80 million to 300 million by 2022. Civil aviation minister Ashok Gajapathi Raju said the policy aims to take flying to the masses by making it affordable.
The Centre has set a precondition for states that if they want to avail of RCS, they must lower VAT on ATF to one per cent or less. It hopes to roll out RCS in the second quarter of the financial year. The government also made it clear the VGF to be shared by the Centre and state governments will be in the ratio of 80:20 while for Northeastern states it will be 90:10.
