AP to create own aviation policy | SupportBiz


AP to create own aviation policy

To encourage the state’s aviation industry, the Andhra Pradesh government has announced to create its own civil aviation policy, without clashing with that of the Centre.

The decision on the new policy was made at a meeting in Hyderabad on Tuesday chaired by chief minister N. Kiran Kumar Reddy, and attended by Infrastructure & Investment minister G. Srinivasa Rao, department’s principal secretary R. R. Mishra, and the officials from the relevant departments, i.e., Roads & Buildings, Home and Tourism.

A statement from the office of the chief minister N. Kiran Kumar Reddy said that, the new policy will enable the state authorities to develop non-hub airports, which will be instrumental to infuse balanced growth in economy even in the interior regions of the state.   

"Financing gaps, if any, could be bridged through the viability gap funding scheme from central government, which provides for a capital grant of up to 20 percent of the project cost. In addition, state will provide additional financing for up to 20 percent of project cost," the statement said.

The government has asked the Administrative Staff of College of India (ASCI) in Hyderabad to prepare a skeletal structure of the policy which will also focus on aviation training, aviation clubs, adventure sports and aircrafts maintenance, repair and overhaul (MRO).

An AP State Civil Aviation Board, supported by an official committee, would be created with chief minister as chairman and the minister concerned, chief secretary and others as members, to overlook implementation of the policy.

The new policy is expected to ensure state support and incentives including municipal tax reimbursements, attractive value added tax/service tax rates, road connectivity, utility connections and single window clearance to attract private investment in construction of airports and introduction of private airlines. Helicopter service and heli-tourism through provision of heliports are also on the cards.