'Airline companies’ plan to import Aviation Turbine Fuel (ATF) may become a reality, as the civil aviation ministry is likely to push for sharing oil companies’ infrastructure to import fuel. “We will be pushing for a provision, where oil companies can share their infrastructure for transporting fuel. The infrastructure can be shared at a cost, which can be mutually agreed upon. This will form a part of our presentation to the Prime Minister,” said a senior civil aviation ministry official, who did not want to be identified. In February 2012, the government had allowed airline companies to import jet fuel directly for their consumption. However, they have not been able to import fuel directly even after over two years primarily due to two reasons. One, the difficulties in transporting the fuel till the airport and secondly, due to uncertainty over taxes imposed by state governments. The civil aviation ministry will also be pushing for uniform tax on jet fuel. “We will be pushing for a uniform 4 per cent tax on fuel. However, that requires consultation with states, who will have to do away with the revenues they get through sale of ATF,” said the official. Jet fuel in India attracts a tax of up to 33 per cent, which is the second highest in the world after Bangladesh. Due to high taxes on fuel, cost of oil constitutes around 50 per cent of the total operating cost for airlines — a reason often given for losses in the aviation industry in the country. All ministries are likely to give presentations with key issues that need urgent attention to ensure growth in the economy. These meetings will take place in groups and the civil aviation ministry is part of the transport and communication group, which also has ministries like road transport, highways, shipping and others. The other demands in the presentation include focus on regional connectivity, develop hubs and cargo facilities at the existing airports, tax relaxation to ensure the development maintenance, repair and overhaul in the country. The civil aviation ministry will also be asking for the clearance of Rs 3,000 crore deficit in the equity infusion plan of Air India. “Of the Rs 3,000 crore, Air India has got over Rs 1,300 crore in the current fiscal and we would be seeking an immediate infusion of Rs 1,600 crore in the airline,” said the official. The Interim Budget had allocated over Rs 5,500 crore to Air India for the current fiscal and over Rs 1,300 crore has been already disbursed to the airline.
