Bilateral relation between India and EU - bright future together with even stronger cooperation and collaboration between EU and India.
- Reduced GST rates on MRO services from 18% to 5%
- Allowed 100% Foreign Direct Investment into the sector.
- Airports to use 100% green energy by 2024.
- Flights using bio-fuel blended with ATF.
“India and the European Union (EU) have shared strong historical relations which continue to grow today on the back of robust physical, digital and people-to-people connectivity, aided by the aviation industry”
Shri Scindia stated, “Under the visionary leadership of the Prime Minister Shri Narendra Modi, the Government has taken several steps to promote aircraft manufacturing in the country. We have reformed the regulatory environment to make it as conducive as possible for MROs – reduced GST rates on MRO services from 18% to 5% and allowed 100% Foreign Direct Investment into the sector. New MRO guidelines have also been rolled out for rationalisation of the charges leviable on MRO Service Providers for ease of doing business. I would urge industry players from EU to tap these opportunities, and become a part of the fastest growing aviation market in the world.”
The minister invited EU players to partner India in developing adaptive technologies, and support the objective of tackling emissions from the aviation Industry. “We are encouraging airports to use 100% green energy by 2024, and achieve net zero by 2030. 25 AAI airports are already using 100% green energy. Our target is to make another 121 Airports carbon neutral by 2025. We have also mandated the use of renewable energy as part of the bid documents for upcoming airports; we are also working towards encouraging the use of Sustainable Aviation Fuel. Indian Airline operators have already conducted demonstration flights using bio-fuel blended with ATF”, he concluded.
Ms Adina Vălean, European Union Commissioner for transport, also addressed the summit through virtual mode. She said, “From commercial opportunities, to aviation safety and security, sustainability, air traffic management, or consumer protection, our shared experiences, as well as our shared objectives, make us natural partners.”
She further said, “We already have a successful history of partnership and cooperation in many areas. I truly hope aviation will become one of our most successful partnerships.”
अब उड़ेगा देश का हर आम नागरिक
The Ministry of Civil Aviation has launched the 5th round of the Regional Connectivity Scheme (RCS) – Ude Desh Ka Aam Nagrik (UDAN) to further enhance the connectivity to remote and regional areas of the country and achieve last mile connectivity.
Key Features of UDAN 5.0 are as follows: This round of UDAN focuses on Category-2 (20-80 seats) and Category-3 (>80 seats).
The earlier stage length cap of 600 km is waived off and there is no restriction on the distance between the origin and destination of the flight.
Viability gap funding (VGF) to be provided will be capped at 600 km stage length for both Priority and Non-Priority areas which was earlier capped at 500 km.
No predetermined routes would be offered. Only Network and Individual Route Proposal proposed by airlines will be considered.
The airlines would be required to submit an action/business plan after 2 months from the issuance of LoA wherein they submit their aircraft acquisition plan/availability of aircraft, crew, slots, etc. at the time of the Technical Proposal.
The same route will not be awarded to a single airline more than once, whether in different networks or in the same network.
Exclusivity will be withdrawn if the average quarterly PLF is higher than 75% for four continuous quarters, to prevent exploitation of the monopoly on a route.
25% of the Performance Guarantee to be encashed for each month of delay up to 4 months, to further incentivize quick operationalization.
Airlines would be required to commence operations within 4 months of the award of the route. Earlier this deadline was 6 months.
A list of airports that are ready for operation or would soon be ready for operations has been included in the scheme to facilitate quicker operationalization of routes under the Scheme.
Novation process for routes from one operator to another is simplified and incentivized.
Commenting on the launch of UDAN 5.0, the Minister of Civil Aviation & Steel, Shri Jyotiraditya Scindia said, “UDAN has proved to be a lifeblood of many regions which are now well connected with places across the country. This new & stronger version of the scheme will raise the momentum, connecting new routes, and bring us closer to the target of operationalizing 1000 routes & 50 additional airports, heliports, and water aerodromes in the near future. अब उड़ेगा देश का हर आम नागरिक!”
UDAN Scheme has benefitted a diverse set of stakeholders. Passengers have got the benefits of air connectivity, airlines have received concessions for operating regional routes, unserved regions have received the direct and indirect benefits of air connectivity for their economic development. It is another step towards the prime minister’s vision of the common man traveling by air at affordable and subsidized airfares.
