Budget to help India become MRO hub of Asia, says Raju

 Civil Aviation Minister Ashok Gajapathi Raju on Wednesday appeared to justify the hike in ATF excise duty proposed in the Budget, indicating that the increase in prices due tax hike was only 6.56 % when the jet fuel prices have come down by 25 % in last 13 months.

On the positive side, he said the Budget has paved the way for developing India as a Maintenance, Repair and Overhauling (MRO) hub of Asia.

 The Budget has made provisions for incentivising domestic value addition to help ‘Make in India’ initiative, he said. Asked about the increase of excise duty on jet fuel from 8 % to 14 %, the minister said that the decrease in ATF base price over the last 13 months is around 25.04 % while the rise increase in ATF prices due to increase in excise duty comes to around 6.56 %.

He was also happy about the provisions aimed at reviving the unserved and under-served airports in the country for increasing regional connectivity.

Airports and airstrips under control of states will be identified in consultation with states and airlines to make such airports operational.