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Modi to revamp aviation industry, not keen on privatising Air India

Jun 24, 2014 01:22 PM IST Politics Politics

New Delhi: The Narendra Modi government is planning revamp of the aviation industry. The Civil Aviation Ministry has made several proposals to the Prime Minster during a presentation last week to bring changes to the ministry.

Though according to sources, the ministry is not keen on privatising the ailing Air India, it wants to improve its performance. The PM reportedly, is concerned over the huge debt burden on the aircraft carrier. The PM has also stressed on priority being given to improve safety standards.

Sources say that the ministry is keen on reductions of ATF taxes levied by states to rescue operation cost of the airlines. It is also pushing for open access to aviation turbine fuel (ATF) fuel for airlines. The move would enable airlines to import ATF to airports rather than buy it from states at higher prices.

The US Federal Aviation Authority has degraded India's safety ranking and the government is keen on restoring this.

During the presentation to PM on Saturday, the Civil Aviation Minster along with the CA secretary were present. Sources say that the PM has showed interest in the reforms that were presented to him.