PIM issued for the sale of Pawan Hans
The Transaction Adviser is scrutinizing the “Expression of Interest” received for the strategic sale of Air India, said the Civil Aviation Ministry on 9 Feb 2021
The Product Information Management (PIM) for the sale of the national helicopter company Pawan Hans has also been issued while the PIM for Air India Airports Services (Ground handling) is under preparation, said the Ministry which elaborated on allocation received under the Budget 2021-22.
To boost value addition in agriculture and allied products and their exports, the scope of ‘Operation Greens Scheme’ that is presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products.
The Krishi Udaan Scheme stands converged with Operation Greens through air freight subsidy of 50% for the agri-perishables of NER States and 4 Himalayan States/UTs. The expansion of product-coverage will boost the Krishi Udaan Scheme and improve air cargo transportation from these States.
The budget has also proposed monetisation of the next lot of airports for operations and management concession. Other core infrastructure assets that will be rolled out under the Asset Monetization Programme are AAI Airports in Tier II and III cities.
The Airport Authority of India is working on the next round of privatization in which 6-10 airports will be included.
Six airports have already been awarded to the successful bidder and the concession agreements have been signed.
Proceeds from these asset sales will help the Ministry to complete the goal of building 100 new airport by 2024.
Under a new centrally sponsored scheme, PM Atma Nirbhar Swasth Bharat Yojana, Union budget 2021-22 proposes development of health systems capacities in the country which also includes the aviation entry points. Under this program Public Health Units will be strengthened at 32 airports. This program will facilitate smooth movement of pharmaceuticals through air across India as well in other parts of the world.
The Ministry elaborated on the measures from the budget for the aviation industry in India. These measures range from tax incentives and custom duty reduction for promoting aatmanirbharta, to asset monetisation and disinvestment to mobilise resources for new infrastructure development.
Overall, the budget proposals are aimed at creating opportunities for strengthening the aviation eco-system in the country and developing India as an aviation sector manufacturing hub.
Major highlights of the Union Budget 2021 for the aviation industry include:
The Government is committed to make the International Financial Services Centre (IFSC) in GIFT City a global financial hub. In addition to the tax incentives already provided, the current budget proposed more tax incentives which includes (i) tax holiday for capital gains incomes of aircraft leasing and financing company, (ii) tax exemptions for aircraft lease rentals or royalty paid to foreign lessor, (iii) tax incentive for re-location of foreign funds in IFSC and (iv) tax exemptions to investment division of the foreign banks located in IFSC.
These tax exemptions are a major boon to lessors operating from IFSC. These would help in establishing a vibrant aircraft leasing and financing environment in India, besides offering better terms to Indian and foreign carriers. These measures comes on the back of a series of initiatives undertaken by Ministry of Civil Aviation since 2019 to create an aircraft leasing and financing ecosystem in GIFT (Gujarat International Financial Tech) city of India.
Customs duty has been reduced from 2.5% to 0% in the budget proposal on aviation sector components or parts, including engines, for manufacturing of aircraft by Public Sector Units of Defence Ministry. This measure will help grow the aviation industry in the country by reducing cost of inputs for domestic manufacturing. #investment #banking #manufacturing #exports #projects /fiinews.com
