February 18, 2016 | PHD Aviation Summit – 2016 – Indian Civil Aviation-Benefits beyond Borders held here on today has recommended to the government that interest subsidy of 2% should be accorded for small aircraft acquisition from financial agencies to civil aviation entrepreneurs to develop regional air connectivity.
Making such a recommendation in his theme address K Narayana Rao, Chairman, Civil Aviation Committee, PHD Chamber to the Civil Aviation Minister Ashok Gajapathi Raju Pusapati who presided over the Summit, however, pointed out saying “civil aviation entrepreneurs need Rs.100 crores of financial assistance to acquire small air craft for improved regional connectivity”.
“On their own, such entrepreneurs cannot generate such an amount from their internal accruals, therefore, the civil aviation ministry should evolve a formula seeking 2% interest subvention for the purpose through proper channels so that one of the leading financial agencies make provisioning in their statute to extend loan facilities for acquisition of smaller air craft”, he said.
The government, according to PHD Chamber should not take trouble for acquiring such air craft as the sector in sense of revenue acquisition stays stressed and therefore, organizing interest subsidy for air craft acquisition through entrepreneurial skills would be an ideal way which the government should explore before the finance minister rolls out the budget proposals for fiscal 2016-17 in next few days.
Speaking on the occasion, the Minister, however, did not make any comment on the suggested move barring saying that India needs to correct its weaknesses as it is one of the few countries in the world that has such diversities and thus, efforts should be mounted to realize its potential in all segments of Indian economy including that of civil aviation.
The Chamber holds that air connectivity to remote and regional areas not only results in balanced development through time-effective flow of tangible benefits (goods and services) and intangible benefits (culture and information) from urban centres, but also has various economic and social benefits.
According to it, air connectivity has a huge positive economic impact driven by several reasons. Estimates reveals that INR 1(one) spent on air transport contributes as much as INR3.25 to the economy and every one job in aviation results in 6.10 jobs in the economy overall.
Ambassador, Embassy of the Republic of Turkey, Dr. Burak Akcapar in his remarks demanded that air linkages between India and Turkey should grow farther and be made broad based with intensifying both the cargo and passenger movements between the two nations.
In their presentation, Senior Vice President, PHD Chamber, Gopal Jiwarajka and its Vice President, Anil Khaitan also laid emphasis on increasing connectivity pointing out that the economic benefits generated through them directly and indirectly benefits all the stakeholders in the civil aviation sector including their economic strength.
On the occasion, a knowledge report was also released by the Minister along with Chairman and Co-Chairmen of Civil Aviation Committee, PHD Chamber K Narayana Rao and Bhupesh Joshi and Vipin Vohra. The Chairman, Tourism Committee of the Chamber Mukesh Gupta and its Director Yogesh Srivastav were also present.
