Regional airlines, helicopters will boost last mile connectivity

“The focus has to be on smaller town airports as well as regional connectivity in India… That poses its own sets of issues – economies of scale, leasing costs and pricing – and those are the things we are exploring today.”

— Jyotiraditya Scindia

Aviation Minister Jyotiraditya Scindia said that the government was planning a policy for regional airlines and helicopter operators that will enable them to boost last mile connectivity. The Minister highlighted the fact that the focus has to be on smaller town airports as well as regional connectivity in India. “That poses its own sets of issues – economies of scale, leasing costs and pricing – and those are the things we are exploring today,” he said. Speaking at an event organised by industry body ASSOCHAM, Scindia said: “We are going to come out with a policy for regional airlines and for helicopters to make them much more economical, to make them much more pervasive, and to provide that last mile connectivity because growth is also going to come from that sector.”

The potential for growth could be seen from smaller cities like Jharsuguda in Odisha and Rupsi in Assam. “We have to provide the last mile connectivity,” he said.

“In the last over six months, 12 more states have brought their VAT rate on ATF in 1-4 per cent bracket, he stated. He also said: “Let me assure you that I would not rest until VAT is reduced in all states. I have 13 more states to deal with.”

He mentioned that the penetration of helicopters in India was negligible: there were only 130-140 civil helicopters but the country had need of helicopters in thousands. “So we have to come out with a policy that makes it possible for helicopters to drive the growth especially in north eastern states and in the island states…that is something that I am working on as we speak,” he said.

He also spoke about the high rate of Air Turbine Fuel (ATF), eleven states had VAT rate on ATF between one and four per cent and 25 states had between 15 and 30 per cent when he took charge as Aviation Minister. The Centre then went to states and helped them understand that lowering the VAT rate on ATF would assist them in boosting economic growth and tourism, he stated. In the last over six months, 12 more states have brought their VAT rate on ATF in 1-4 per cent bracket, he stated. He also said: “Let me assure you that I would not rest until VAT is reduced in all states. I have 13 more states to deal with,” he added.

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