REPORT NO. 244
PARLIAMENT OF INDIA RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE
TWO HUNDRED FORTY FOURTH REPORT Demands for Grants (2017-18) of the Ministry of Civil Aviation (Presented to the Rajya Sabha on17 th March, 2017) (Laid on the Table of Lok Sabha on17th March, 2017 )
Rajya Sabha Secretariat, New Delhi March, 2017/Phalguna, 1938 (Saka) 40
Hindi version of this publication is also available
PARLIAMENT OF INDIA RAJYA SABHA
DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON TRANSPORT, TOURISM AND CULTURE
TWO HUNDRED FORTY FOURTH REPORT Demands for Grants (2017-18) of the Ministry of Civil Aviation
(Presented to the Rajya Sabha on 17th March, 2017) (Laid on the Table of Lok Sabha on 17th March, 2017)
Rajya Sabha Secretariat, New Delhi March, 2017/Phalguna, 1938 (Saka) Website : http://rajyasabha.nic.in E-mail : [email protected] CONTENTS
PAGES
1. COMPOSITION OF THE COMMITTEE ...... (i)-(ii)
2. INTRODUCTION ...... (iii)
3. ACRONYMS ...... (iv)-(vi)
4. REPORT ...... 1-30
5. RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE ...... 31-38
6. MINUTES ...... 39-45
7. ANNEXURE ...... 47-50 COMPOSITION OF THE COMMITTEE (Constituted on 1st September, 2016)
1. Shri Mukul Roy — Chairman
RAJYA SABHA 2. Shri Ritabrata Banerjee 3. Dr. K. Chiranjeevi 4. Dr. Prabhakar Kore 5. Shri Kiranmay Nanda 6. Shri Rangasayee Ramakrishna 7. Kumari Selja 8. Shri Rajeev Shukla 9. Shri Narendra Kumar Swain 10. Shri Lal Sinh Vadodia
LOK SABHA 11. Shri Subrata Bakshi 12. Shri Ram Charitra Nishad 13. Shri Vinod Chavda 14. Shri Rajeshbhai Naranbhai Chudsama 15. Kumari Arpita Ghosh 16. Shri Rahul Kaswan 17. Shri P. Kumar 18. Shri Harish Chandra Meena 19. Yogi Aditya Nath 20. Shri Kristappa Nimmala 21. Shri Rajesh Pandey 22. Shri Rajesh Ranjan 23. Shri P. Srinivasa Reddy 24. Shri Ram Kumar Sharma 25. Shri Prathap Simha 26. Shri Dushyant Singh 27. Shri Kunwar Haribansh Singh 28. Shri Rakesh Singh 29. Shri Shatrughan Sinha 30. Shri Manoj Tiwari 31. Shri K. C. Venugopal
(i) (ii)
SECRETARIAT Shri J.G. Negi, Joint Secretary Shri Swarabji B., Director Shri Arun Kumar, Assistant Director Shrimati Catherine John L., Assistant Director Shri P.P. Raumon, Committee Officer INTRODUCTION
I, the Chairman, Department-related Parliamentary Standing Committee on Transport, Tourism and Culture, having been authorized by the Committee to present on its behalf, do hereby present this Two Hundred Forty Fifth Report on Demands for Grants (2017-18) of the Ministry of Civil Aviation.
2. The Committee, at its meeting held on 2nd March, 2017 considered the subject and heard the Secretary and other officials of the Ministry of Civil Aviation.
3. The Committee wishes to express its thanks to the officers of Ministry of Civil Aviation for placing before the Committee, the material and information desired in connection with the subject and for clarifying the points raised by the Members.
4. The Committee considered and adopted the Report at its meeting held on the 9th March, 2017.
MUKUL ROY NEW DELHI; Chairman, 9 March, 2017 Department-related Parliamentary Standing Phalguna 18, 1938 (Saka) Committee on Transport, Tourism and Culture Rajya Sabha
(iii) ACRONYMS
AA&ES : Administrative Approval and Expenditure Sanction
AAI : Airports Authority of India
AAIB : Aircraft Accident Investigation Bureau
AASL : Airline Allied Services Limited
AERA : Airports Economic Regulatory Authority
AGM : Assistant General Manager
AIATSL : Air India Air Transport Services Limited
AIL : Air India Limited
ANS : Air Navigation Services
ATF : Aviation Turbine Fuel
ATM-NOC : Air Traffic Management-No Objection Certificate
Av Gas : Aviation Gasoline
BCAS : Bureau of Civil Aviation Security
BE : Budget Estimates
CAA : Controller of Aid Accounts
CASLO : Civil Aviation Security Logistic Officer
CCEA : Cabinet Committee on Economic Affairs
CISF : Central Industrial Security Force
CM : Chief Minister
CRS : Commission of Railway Safety
DGCA : Directorate General of Civil Aviation
DGM-OPS : Deputy General Manager Operations
DIACL : Dholera International Airport Company Ltd.
DM : District Magistrate
DoPT : Department of Personnel and Training
EFC : Expenditure Finance Committee e-GCA : e- Governance of Civil Aviation
(iv) (v)
FAQs : Frequently Asked Questions
FRP : Financial Restructuring Plan
FY : Financial Year
GAGAN : GPS Aided GEO Augmented Navigation
GBS : Gross Budgetary Support
GoI : Government of India
GoUP : Government of Uttar Pradesh
GSS : Ground Safety Services
GST : Goods and Service Tax
HAG : Higher Administrative Grade
HAL : Hindustan Aeronautics Limited
HQ : Head Quarter
I&EBR : Internal & Extra Budgetary Resource
IATA : International Air Transport Association
IGI Airport : Indira Gandhi International Airport
IGRUA : Indira Gandhi Rashtriya Uran Akademi iOS : iPhone Operating System
IT : Information Technology
JV : Joint Venture
JVC : Joint Venture Corporation
MGR : Manager
MHA : Ministry of Home Affairs
MoCA : Ministry of Civil Aviation
MoU : Memoranda of Understanding
MRO : Maintenance, Repair and Overhaul
NFTI : National Flying Training Institute
OL : Official Language
OMDA : Operation, Management and Development Agreement
PDC : Probable Date of Completion
PHHL : Pawan Hans Helicopters Limited (vi)
PHL : Pawan Hans Limited
PPP : Public Private Partnership
PSU : Public Sector Undertaking
RBD : Reservation Booking Designators
RBI : Reserve Bank of India
RCF : Regional Connectivity Fund
RCS-UDAN : Regional Connectivity Scheme- Ude Desh ka Aam Nagrik
RDE : Radiological Detection Equipments
RE : Revised Estimates
RESA : Runway End Safety Area
RFQ : Request for Quotation
RGNAU : Rajiv Gandhi National Aviation University
RRs : Recruitment Rules
SPV : Special Purpose Vehicle
SSC : Staff Selection Commission
TAP : Turn Around Plan
UPSC : Union Public Service Commission REPORT
The Ministry of Civil Aviation is responsible for the formulation of national policies and programmes for the development and regulation of the Civil Aviation sector in the country. It is responsible for the administration of the Aircraft Act, 1934, Aircraft Rules, 1937 and various other legislations pertaining to the aviation sector in the country.
2. In addition to primary functions of framing of policies, the Ministry provides guidance to the various organizations under it for the implementation of policy guidelines, monitors and evaluates their activities and also provides their interface with Parliament. It also supervises implementation by the organizations of special programmes of the Government, particularly those intended for the weaker sections of society.
3. The Ministry of Civil Aviation has the following organizations under its administrative control:-
(i) Attached Offices /Organizations
z Directorate General of Civil Aviation (DGCA)
z Bureau of Civil Aviation Authority (BCAS)
z Commission of Railway Safety (CRS)
z Aircraft Accident Investigation Bureau (AAIB)
(ii) Autonomous Bodies
z Indira Gandhi Rashtriya Uran Akademi (IGRUA)
z Airports Economic Regulatory Authority (AERA)
z Rajiv Gandhi National Aviation University (RGNAU)
(iii) Public Sector Undertakings
z Airports Authority of India (AAI)
z Air India Limited (AIL)
z Pawan Hans Limited (PHL)
4. The Department-related Parliamentary Standing Committee on Transport, Tourism and Culture considered the Demand No.9 containing the details of budget allocations of the Ministry of Civil Aviation for the financial year 2017-18 at its meeting held on the 2nd March, 2017. During the meeting, the Committee heard the views of the Secretary and other senior officers of the Ministry of Civil Aviation as well as the Heads of the organizations under its purview on budgetary and other aspects.
1 2
Assessment of the Demands for Grants (2017-18) of the Ministry
5. The Capital outlay in respect of Ministry of Civil Aviation for 2017-18 is ` 5188.20 crores with a budgetary support component of ` 1920.70 crores and I&EBR of ` 3267.50 crores. 6. The Revenue and Capital break-up of the total budgetary provision of the Ministry for the year 2017-18 are as given in the following table:
(` in crores) Demand No. Total Revenue Capital
9-Ministry of Civil 2702.04 781.34 1920.70 Aviation
7. The budgetary support component as reflected in the Demands for Grants of the Ministry is as under:-
(` in crores) A. Capital
Sl.No. Name of Organization Budgetary Support
1. Air India Ltd. 1800.00
2. Directorate General of Civil Aviation 79.50
3. Bureau of Civil Aviation Security 41.00
4. Hotel Corporation of India Ltd. 0.10
5. Pawan Hans Ltd. 0.10
TOTAL Plan 1920.70
8. On the Revenue side, approved outlay of Ministry of Civil Aviation for 2017-18 is ` 781.34 crores which is earmarked for establishment related expenditure of various organizations under the Ministry as well as payment of subsidy for special operations (` 200.00 crores). The details in this regard are as under:-
(` in crores) Sl.No. Scheme BE 2017-2018 B. Revenue 1. (i) Ministry of Civil Aviation – Sectt. 230.55 (ii) Directorate General of Civil Aviation 135.00 (iii) Bureau of Civil Aviation Security 45.00 (iv) Commission of Railway Safety 11.59 2. Subsidy for special operation 200.00 3. Airports Economic Regulatory Authority of India 14.00 3
4. IGRUA 0.10 National Aviation University 45.00 5. Airports Authority of India 100.00 Regional Connectivity Scheme 0.10
TOTAL – Revenue (Gross) 781.34 Recoveries 0.04
TOTAL - Revenue (Net) 781.30
Comparative Table on BE 2016-17, RE 2016-17 and BE 2017-18 9. The Ministry of Civil Aviation submitted the following information as provisions made in the budget during 2016-17, revised estimates for 2016-17 and provisions approved for 2017-18:-
(` in crores) Plan Non-Plan Total Budget Estimates 2016-2017 2000.00 590.72 2590.72 Revised Estimates 2016-2017 2898.63 553.74 3452.37 Capital Revenue Total Budget Estimates 2017-2018 1920.70 781.34 2702.40
10. The Committee notes that ` 2702.40 crores has been allocated for the Ministry of Civil Aviation for 2017-18 against the allocation of ` 3452.37 crores at RE stage in 2016-17.
11. The projected demand and actual allocation under Capital and Revenue for the year 2017-18 are given as under:-
(` in crores) A. CAPITAL Sl.No. Name of Organization Proposed Budget Actual Allocation of Budget- 2017-18 1. Bureau of Civil Aviation 40.30 41.00 Security 2. Directorate General of 86.00 79.50 Civil Aviation 3. Air India Ltd. 2324.78 1800.00 4. Hotel Corporation of India 0.10 0.10 Ltd. 5. Pawan Hans Ltd. 28.00 0.10
TOTAL = 2479.18 1920.70 4
(` in crores)
B. REVENUE
Sl.No. Scheme Proposed Budget Actual Allocation Budget- 2017-18 1. (i) Ministry of Civil Aviation – Sectt. 36.66 230.55 (ii) Directorate General of Civil Aviation 162.00 135.00 (iii) Bureau of Civil Aviation Security 72.02 45.00 (iv)Commission of Railway Safety 11.59 11.59 3. Subsidy for special Operation 405.00 200.00 4. Airports Economic Regulatory Authority 20.00 14.00 of India 5. Airports Economic Regulatory Appellate 0.50 0.00 Tribunal 6. IGRUA & National Aviation University 81.30 45.10 7. Airports Authority of India 148.00 100.00 8. Regional Connectivity scheme 1395.00 0.10
TOTAL – Revenue (Gross) 2332.07 781.34 Recoveries 0.04 0.04
TOTAL – Revenue (Net) 2332.03 781.30
12. The Ministry, in its written reply, has stated that no specific reasons were given by Ministry of Finance for lower allocation of budget against the projections given by the Ministry of Civil Aviation. However, funds were not allocated for Regional Connectivity Scheme for revival of airports as the Cabinet approval for the scheme is awaited. Due to similar reasons, provision for Pawan Hans Ltd. could not be made. On account of the cut in projected budget of Ministry of Civil Aviation for the year 2017-18, some of the on-going activities will be affected. In order to meet the requirement for the on-going projects of Ministry of Civil Aviation, proposals will be taken up in the first Supplementary and RE 2017-18.
13. The Secretary, Ministry of Civil Aviation while deposing before the Committee, stated that the size of aviation industry in 2016 was ` 1.4 lakh crore compared to Railways at around Rs. 1.5 lakh crore. He further stated that civil aviation has achieved near rail parity.
14. The Committee notes that there is considerable shortfall in budgetary allocation for 2017-18 especially on the Revenue side and that the Ministry of Finance has not intimated any reason for this reduction. Keeping in view the considerable growth of the civil aviation sector, Committee is of the considered view that with the present allocation, it would be difficult to run the existing schemes and other activities undertaken by the Ministry. Therefore, the Committee recommends that the Ministry should actively pursue the matter of increasing the allocation in the first supplementary and at the RE stage in the current financial year 2017-18, with the Ministry of Finance. 5
15. The following Heads are introduced in BE 2017-18:
(i) Regional Connectivity Scheme:
3053.80.800.22 Regional Connectivity Scheme
22.00.35 Grants for creation of capital assets
This head has been created for revival of airports as was announced by the Hon’ble Finance Minister in his budget speech for 2016-17
(ii) AERA:
3053.80.800.16 Grants-in-aid to AERA
16.00.35 Grants-for creation of capital assets
This head has been created for making a provision for AERA’s share for the combined office building.
16. In response to a query on the sharp rise from ` 28.17 crores RE (2016-17) to BE (2017-18) ` 230.55 crores under the head ‘Secretariat-Economic Services’, the Ministry has stated in its reply that the increased provision under Secretariat Economic Services’ is for skill development scheme.
17. The Committee may be apprised of the details of the Skill Development Scheme at the implementing stage.
Twelfth Five Year Plan
18. As per the written reply furnished by the Ministry, the projects initiated by Ministry during 12th Five Year Plan are:-
National Aviation University
National Aviation University is aimed at creation of Aviation Training Hub in India to meet the requirements of other countries in the region. The University building is under construction and the academic activities are likely to be started from 2017-18.
DGCA
(i) Online Examination system:
Equipment for modernization of examination system conducted by Central examination Organisation of DGCA have been installed.
(ii) Construction of Director General of Civil Aviation (HQ) Building:
A proposal for combined Headquarter Building of DGCA, BCAS, AAIB and AERA has been approved with the total cost of ` 303.80 crore and MOU has also been signed with Airport Authority of India for its construction. It is also proposed to release ` 44.09 crore in the current financial year to Airport Authority of India. The building is likely to be completed within 36 months. ` 16.70 crore has already been released to AAI. 6
(iii) e-GCA Project: Automation of DGCA functions, digitization of paper, online interface with external entities and course-functional integration with DGCA HQ, Regional and Field Offices of DGCA. The scheme is under implementation (iv) Setting up of Joint Training Academy: Joint Training Academy for AAI, DGCA and BCAS has been started with the name Indian Aviation Academy, Vasant Kunj, New Delhi. For construction of the building of the academy out of the total cost fixed at `126.20 crores, DGCA’s total contribution in the project is `43.54 crore. An amount of ` 34.83crore has already been released by DGCA so far. BCAS (i) Radiological Detection Equipments:- BCAS initiated a project for installation of Radiological Detection Equipments at 14 Airports. The delivery of the RDE equipment at all 14 Airports has been completed and work of Installation and Commissioning is under progress. Rs 50.56 crores have been released so far. (ii) Setting up of Civil Aviation Security Training Academy: An amount of `39.18 Crore has already been released by BCAS so far. (iii) Construction of Office Building at Regional Offices: Construction of office building in Mumbai, Ahmadabad, Guwahati and Amritsar with the total cost of ` 25.09 crore against which `23.98 crores has been released so far. (iv) Construction of Bureau of Civil Aviation Security (HQ) Building: A proposal for combined Headquarter Building of DGCA, BCAS, AAIB and AERA has been approved. (v) Bio-Metric Access Control System at Airports:- A Project for entry in Airport will be through Smart Card based Biometric Access Control System. The total project cost of this project is ` 33.24 Crore. Development of the system has been completed and it is being roll out by 1st April, 2017 at 7 Airports. Pawan Hans Limited
Scheme-wise details of Plan Outlay for the Twelfth Five Year Plan (2012-13 to 2016-17) (Approved Plan outlay) (A) Funding by PHHL IEBR (` in crores) Schemes Fleet Size 2012-13 2013-14 2014-15 2015-16 2016-17 Total as on XIIth 31.03.2012 Five Year Plan Outlay 1. Acquisition of New Fleet 7
(I) Light Helicopters
- Light Single engine (9 Nos.) 5.20 20.80 26.00 (Adv.)
– – (2Nos.) (2Nos.)
- Light twin engine – 13.50 36.00 49.50
– – (Adv.) (2 Nos.) (2 Nos.)
(II) Medium Helicopters
Dauphin N (18 Nos.) Dauphin N3 (Adv.) (14+3Nos.) – – 57.20 114.60 171.80
(Adv.) (10Nos. (Adv.) (Adv.)
Dauphin N3 (Balance 91.52 137.28 228.8 Payment)
(2 Nos.) (3 Nos.) (5Nos.)
(III) Heavy Helicopters 11.45 – 45.80 57.25
Mi-172 (1 No.) – – (Adv.) (1 Nos) (1 Nos)
(IV) New Segment – – 5.20 20.80 – 26.00 Amphibian Sea Plane (Adv.) (2 Nos) (2 Nos)
Sub Total (45 Nos.) 0.00 0.00 87.35 153.52 203.88 559.35
(Adv.) (6 Nos.) (6 Nos.) (12Nos.)
114.60 (Adv.) 2. Import of equipment a Workshop/ground 3.00 5.00 5.00 3.50 4.25 20.75 support equipment b Spare Aeroengines 2.50 2.50 3.00 5.00 3.50 16.50
Sub Total 5.50 7.50 8.00 8.50 7.75 37.25 3. Equity Contribution 3.40 – – – – 3.40 to NFTI
4. Creation of Maintenance Centre/
JV with 10.00 10.00 15.00 15.00 20.00 70.00 HAL/Manufacturer 8
5. Building Projects/ Others (I) New Hanger/20 5.00 5.00 5.00 10.00 – 25.00 Flats at Mumbai (II) Other 3.00 5.00 5.00 3.00 4.00 20.00 Civil/Elect.Works, Furnitures, office equipment & Vehicles (III) IT Plan-new 3.00 2.00 2.00 2.00 1.00 10.00 ERP/Hardware
SUB TOTAL 11.00 12.00 12.00 15.00 5.00 55.00 Total A (1+2+3+4+5) 29.90 29.50 122.35 192.02 351.23 725.00
(B) Funding of Projects through GBS forming part of the Twelfth Five Year Plan of MOCA
Schemes 2012-13 2013-14 2014-15 2015-16 2016-17 Total XIIth Five Year Plan Outlay 5.00 Projects under GBS 5.00 – 45.00 40.00 60.00 150.00 Total (B) 5.00 – 45.00 40.00 60.00 150.00
Airports Authority of India Abstract of Capital Expenditure Budget for Twelfth Five Year Plan (2012-13 to 2016-17) Projected 2012-13 2013-14 2014-15 2015-16 2016-17 Figures Sl. Particulars Exp. Exp. Exp. Exp. BE No. 1 2 3 4 5 6 7 8 1 Non-Metro Airports
A Aerodrome Work
1 Eastern Region 1592.22 142.64 96.75 114.01 132.68 148.60 9
1 2 3 4 5 6 7 8 2 North Eastern 572.27 88.77 48.97 36.64 53.53 55.56 Region 3 Northern Region 319.64 148.20 230.80 400.14 291.95 289.14 4 Western Region 793.5 157.28 130.88 131.03 162.29 138.97 5 Southern Region 1368.16 49.36 90.92 155.43 329.19 282.21
SUB TOTAL :A: 4645.79 586.25 598.32 837.25 969.64 914.48 B ANS 1 Air Navigational 3656.98 147.08 143.96 270.92 266.82 191.00 Services 2 Gagan Project 430.65 30.65 23.77 31.57 4.10 10.00 3 Engg. Works-ANS 22.56 106.61 13.47 58.38 50.30 4 ATM-NOC 0.00 0.00 0.00 2.00 0.00
SUB TOTAL :B: 4087.63 200.29 274.34 315.96 331.30 251.30 C Information & 156.11 30.32 19.82 36.66 24.68 34.50 Technology D GSS-Equipment 402.69 26.98 9.41 14.75 59.38 165.00 & Tech E Airport System 147.32 9.04 0.54 3.20 4.79 35.50
SUB TOTAL :B to E 706.12 66.34 29.77 54.61 88.85 235.00
TOTAL (A to E) 9439.54 852.88 902.43 1207.82 1389.79 1400.78 2. Metro Airports (i) Kolkata (a) New Project 923.08 591.70 71.95 0.00 0.00 0.00 (b) Other Works 17.85 17.02 47.54 92.12 121.42 Total Kolkata 923.08 609.55 88.97 47.54 92.12 121.42 (ii) Chennai (a) New Project 536.26 203.50 68.37 0.00 0.00 0.00 (b) Other Works 81.10 36.89 44.61 27.96 98.60
TOTAL Chennai 536.26 284.60 105.26 44.61 27.96 98.60
TOTAL (i+ii) 1459.34 894.15 194.23 92.15 120.08 220.02 3. Security infrastucture 1968.73 41.30 53.03 97.81 146.71 230.83 (CISF Barrics, 10
1 2 3 4 5 6 7 8 Quarters, Dog Kennel, Parameter Road & Security Equip.
4. Equity Contribution 309.39 9.39 7.84 2.08 100.00 100.00 in JV Companies
5. Development of 0 0.00 0.00 0.00 0.00 100.00 Regional Airports
6. Miscellaneous 0 2.28 0.47 0.00 0.42 4.38
GRAND TOTAL (1-6) 13177.00 1800.00 1158.00 1399.87 1757.00 2056.00
19. The Committee takes note of the projects initiated by the Ministry during the 12th Five year Plan.
Air India Limited
20. The Ministry has stated in its written reply that for the year 2017-18, the Government has approved a sum of Rs 1800 crores as budgetary support for AI as against Rs 2587 crore as per the TAP, leaving a shortfall of ` 787 crores. The shortfall in equity infusion would adversely impact the financial and operational performance of the company as the same will create undue liquidity issues for the company and company will be unable to meet its financial commitments and maintain the operational efficiency. It may also be stated that in the previous years whenever there was a delay/reduction in the infusion of equity by GOI, the company was forced to borrow from banks and financial institutions to meet its financial commitments thereby leading to payment of additional interest which was not contemplated under the FRP thus impacting the financial position of the company adversely.
21. It has further been stated that the equity infusion sought for FY 2017-18 includes an amount of Rs 1861 crores for the payment of principal/interest on Govt Guaranteed Loans/Debentures. If Air India Ltd. is not able to service the repayment of the principal/interest amount on these guaranteed loans, it may lead to the invocation of the Govt Guarantees by the lenders and may lead to the downgrading of credit ratings. It was a fundamental condition in Financial Restructuring Plan (FRP) that banks would support the TAP & FRP provided the GOI brings in the requisite Equity Infusions as detailed under the TAP. The Regulatory Support given by RBI is also based on the timely infusion of equity by the GOI.
22. The Committee feels that the reduction in equity infusion to the tune of ` 787 crores will adversely affect the financial and operational performance of the company since it may be forced to take loans from banks and financial institutions at a higher interest rate to meet the short fall, which was not contemplated under the Financial Restructuring Plan. The Committee, therefore, is of the considered view that such short fall, at this stage when the company is presently placed at a critical position in achieving the TAP targets, should be avoided. Since the committed financial support from the Government is vital to sustain the momentum of performance of Air India, the Committee strongly recommends that the 11 full amount of equity infusion should be restored to Air India. The Committee recommends that in future, the amount committed under the TAP should be allocated to Air India at the BE stage itself.
23. The Committee was informed by the Secretary that the profit of Air India has been severely dented to the tune of `1000 crore due to rupee depreciation and foreign exchange variation. The Ministry of Finance has not taken into account the factor of rupee depreciation and foreign exchange variation while deciding the equity infusion. The Committee, therefore, recommends that if the intention of the Ministry of Finance is the revival of Air India, then the former should seriously consider the factors which are beyond the control of Air India such as depreciation of rupee and foreign exchange variation, while deciding the amount of equity infusion.
24. The Committee further recommends that the Ministry of Civil Aviation may take up this matter with the Ministry of Finance for the restoration of the full amount of Equity Infusion of ` 2587 crores as requested for in the Annual Plan for the financial year 2017-18 by Air India Ltd.
25. As per the written reply furnished by the Ministry, Air India has posted an Operating Profit of Rs 105 crores in FY 2015-16. In fact it was for the first time since its merger in FY 2007-08 that the company has posted Operating Profits. In the year 2016-17 also the company has been steadily improving its financial as well as operational performance.
26. The Committee appreciates Air India for making operational profits in the financial year 2015-16. The Committee hopes that Air India would register further profits in the coming months. The Committee emphasizes the need for micromanaging routes and timings of Air India flights to make Air India more competitive and passenger friendly.
27. During the deliberations of the Committee, many Members of the Committee have complained that the catering services in Air India aircrafts are not up to the mark and that it needs improvement to attract more passengers. The Committee notes that this is an oft repeated complaint which needs serious attention of the top management of Air India and Ministry of Civil Aviation. The Committee urges upon the Ministry to evaluate the standards of the catering services in Air India flights and take necessary steps to improve the same. The Committee may be informed about the action taken in this regard.
Airports Authority of India
28. The Secretary, while deposing before the Committee, stated that AAI has ventured into Cargo business through AAI Cargo Logistics and Allied Services Ltd. which was launched on 25th October, 2016.
29. The Committee notes that earlier, the cargo sector was dominated by private airlines. The Committee welcomes the entry of AAI into the cargo sector.
30. The Ministry, in its written reply, has given the details of outstanding Traffic Dues and Non- Traffic Dues from various user agencies of airports as below:- 12
Out-standing dues as on 31.12.2016 (` In crores) Particulars Traffic Dues Amount National Carriers 2299.55 Air India Express 271.57 Indian Airlines 591.13 Air India 1341.55 Alliance Air 95.30 Scheduled Domestic Carrier* 179.23 Foreign Airlines a) Landing 246.53 b) Overflying 143.38 State Govt. 20.86 Flying Club 8.06 Other Non-schedule Operator 5.30 Other PSUs 2.79 Sub Total 2905.70 Non Traffic dues National Carriers 229.89 Air India Express 2.50 Indian Airlines 56.84 Air India 166.47 Alliance Air 4.08 Schedule Domestic Carrier 35.15 Foreign Airlines 11.73 Oil Companies 208.62 Central / State Govt. Deptt. 175.58 Flying Clubs 33.76 Non Sch- Operators (Hanger etc.) 65.86 Other PSUs 72.18 other Private Parties 841.10
SUB TOTAL 1673.87
TOTAL 4579.57 *Excluding dues of Rs 294.69 Crores in respect of King fisher Airlines written off in the Books of Accounts of AAI. AAI has filed the Legal suit against Kingfisher Airlines to recover its dues. Airlines are given credit facility against submission of Banks Guarantee / deposit equivalent to 2 month billing. 13
31. Airport Authority of India has taken the following steps to recover the outstanding dues:-
(a) The dues are monitored on regular basis.
(b) In case of delay, AAI issues notices to airlines to settle the dues.
(c) Penal interest is being charged on account of delay in settle the dues.
(d) In case where delay persist, besides en-cashing the security deposit, the defaulting airlines is put on Cash and Carry basis.
(e) For Foreign Airlines AAI have entered into an agreement with IATA for raising of bills and collection of dues
(f) Further legal course of action is followed in case of defaulting parties and Ministry of Civil Aviation is being kept informed.
32. The Committee feels concerned about the huge amount of outstanding dues of AAI for a long time. AAI, being the highest revenue generator, has to be actively helped by the Ministry of Civil Aviation in this regard by taking it up with the defaulting Organizations and Ministries including legal recourse. The Committee recommends that consistent steps should be taken by AAI to recover the outstanding dues.
33. The Committee notes that `294.69 crores is due from now defunct Kingfisher Airlines. The Committee also notes that legal suit has been filed against Kingfisher Airlines to recover the dues. The Committee observes that the Airports Authority of India allowed the accumulation of dues to such a high level in violation of all the existing rules and procedures in practice. The Committee recommends that Airports Authority of India should be cautious in future to ensure that no individual stakeholder/airlines is accumulating such high levels of dues. The Committee also recommends that Airports Authority of India may conduct an internal inquiry (i) to fix the responsibility of Airports Authority of India officials for the accumulation of dues by Kingfisher Airlines and (ii) to strengthen the systems and procedures to prevent the recurrence of accumulation of dues. The Committee may be intimated about the outcome of the internal inquiry.
34. The Secretary, while deposing before the Committee, stated that AAI has a road map for monetization of AAI land.
35. In response to a pointed query regarding the monetization of AAI land, the Ministry has stated that the capital required to develop and maintain an Airport is generated from two sources: Aeronautical Charges and Non- Aeronautical or Commercial Revenues using their facilities. Across the world, the trend is towards a very high percentage, ranging from 60% to 70% of the total revenue of the Airport operators being generated from non-aeronautical sources at major Airports. The comparable figure for AAI Airports is just 24%.
The National Civil Aviation Policy 2016 also strives to generate non-aeronautical revenue in excess of 35% of the Airport’s total revenue for AAI Airports with throughput above 0.5 mppa and has identified that in order to maximize the revenue, the potential of the land on city-side of Airports needs to be unlocked. 14
The AAI Act provide that AAI can take up the planning, development, construction and maintenance of Institutions / Training centers, workshops, Hotels, restaurants and rest rooms, warehouses, cargo complex etc. on AAI land.
Accordingly, AAI has identified some of the Airports in phase-I (Amritsar, Bhubaneswar, Jaipur, Kolkata, Varanasi, Raipur, Lucknow and Tirupati) to make optimal utilization and development of the land for the passenger facilitation and benefits such as:
(i) The non-aeronautical revenue generated can help in cross subsidizing and rationalizing the aeronautical charges on Airlines and passengers.
(ii) Meet the modernization and infrastructure expansion needs of the Airports.
(iii) Enhancing passenger related facilities in Airport premises.
36. The Committee hopes that the monetization of AAI land will generate considerable revenue to AAI.
37. The Committee has noticed that the commercial activities at the Kolkata airport is very poor and that most of the space meant for commercial activities are lying vacant. The officials of Airports Authority of India who appeared before the Committee could not give satisfactory reply to the problem.
38. The Committee recommends that Airports Authority of India should take initiatives to establish sufficient commercial activities at the Kolkata airport to generate reasonable level of non-aeronautical revenue. The Committee is afraid that the neglect of the airport may be a prelude to making it a loss making airport which may pave the way for privatization of services at the airport.
39. It has been brought to the notice of the Committee that Gir Forest which is one of the sanctuaries for Asiatic Lion is a much visited area by the domestic as well as foreign tourists. However, there is no air operations anywhere near the sanctuary. The Committee noticed that there is an airstrip near Gir which can be developed to improve air connectivity. The Committee, therefore, recommends that Airports Authority of India should take the lead to enable the Gir airstrip to start commercial air operations.
40. During the deliberations of the Committee, it was brought to the notice of the Committee that the passenger amenities at the Ahmedabad airport is in bad shape. The officials of the airport are not taking sufficient steps to improve the facilities at the airport. The Committee, therefore, recommends that Airports Authority of India should intervene immediately to ensure that passenger facilities are improved at the Ahmedabad airport.
Bureau of Civil Aviation Authority (BCAS)
41. The Committee understands that the senior level positions in BCAS are occupied by deputationists who have little or no experience in aviation security whereas experienced and qualified officials of BCAS are ignored. In doing so we are endangering the entire civil aviation security of the country as the deputationists leave the organization after a brief stint of 3 years in the organization. 15
42. The Committee, therefore, reiterates its recommendation made in its 231st Report that the senior positions of BCAS may be held exclusively by the cadre officials of BCAS. The Committee further recommends that the Recruitment Rules of BCAS should be amended in such a way that the cadre officers may, without any hindrance, be promoted up to the level of Joint Director General. The Committee desires that the Ministry may submit a note in this regard for the consideration of the Committee. Directorate General of Civil Aviation (DGCA)
43. A provision of `79.50 crores has been made for 2017-18 in respect of DGCA. The major schemes of DGCA during 2017-18 are construction of combined office building, Machinery & Equipment, eGCA, construction of regional offices and setting up of Training Academy. 44. The Committee notes the allocation made for DGCA. Indira Gandhi Rashtriya Uran Akademi (IGRUA) 45. The Ministry, in its written reply, has stated that a “New Business Plan for IGRUA”- aimed at making IGRUA self – sufficient has been approved by the IGRUA Governing Council in its 67th meeting held on 01 February 2017. It consists of increasing the training fee in stages to enhance the income received. Nine of its aircraft (40% of fleet) are due to complete their technical life in two years. It is proposed to replace them with diesel engine aircraft that use ATF as fuel which costs one third of the cost of Av Gas fuel which the current fleet uses. This will bring down the expenditure. In the long term all the remaining aircraft will also be replaced with the diesel engine aircraft. These steps will lead to IGRUA becoming self sufficient. There is no plan for fleet expansion for IGRUA at this stage. 46. The Committee desires that IGRUA may be allocated adequate funds to ensure that the steps taken to make IGRUA self sufficient turn out to be fruitful. Pawan Hans Ltd.
47. In RE 2016-17 an amount of ` 159.05crore was provided to PHL for operationalisation of Rohini Heliport and for settling an old liability of PHL towards a repayment to CAA. PHL had submitted proposal requesting ` 352 crore budgetary support for the financial year 2017-18 which included procurement of helicopters, development of MRO at Rohini and creation of helihub at Guwahati. However, the same could not be provided as the necessary approvals for the projects have yet to be obtained. 48. Fleet augmentation plans of Pawan Hans Ltd., are as under:-
Sl. Particulars/Major Financial Year Remarks, if any No. heads of exp. 2017-18 (`/crores) 1 2 3 1 (i) Light single engine 50.00 Global tender for purchase of three helicopter 3 Nos. light single engine helicopters has already been floated, 10% advance payment in 2016-17 and 90% in 2017-18 under 80:20 Debt equity funding. 16
1 2 3 (ii) Medium helicopters 28.00 Through internal resources. For (9 Nos.) under GBS replacement of 09 medium helicopters proposal. under GBS scheme, advance payment to be made in financial year 2017-18.
112.00 Through GBS. Total cost of 9 Medium helicopters for `700 crores which will be financed through 20% of internal resources and 80% through GBS through tender process, delivery in a phased manner within 18 months after advanced payment.
(iii) Heavy helicopters 153.00 For acquisition of 02 Nos. heavy (2 Nos.) helicopters, payment in 2017-18 under 80:20 debt equity funding to be made.
(iv) Helicopter/Seaplane/ 10.00 Budget provision of scheme Fixed Wing Aircraft- for formalization for acquisition plan under acquisition of new fleet as new Business Plan 2017-27, since EFC per Business Plan 2017-27. under process.
TOTAL 353.00
49. The Ministry, in its written reply, has stated that PHL had requested fund of ` 112 crores as a GBS towards advance payment for purchase of 09 helicopters as replacement of old fleet. Since the proposal has not been approved yet and is under Inter-ministerial consultations, no budgetary support was provided in 2016-17. The same has been shifted to 2017-18.
50. The Committee notes that Pawan Hans is a profit making Organization. However, this profit alone will not be adequate for its own fleet expansion and fleet replacement. The Committee is sure that the investment made in Pawan Hans Ltd. would generate adequate returns to the Government. The Committee, therefore, reiterates its recommendation made in its 231st Report that giving ` 600 crores to Pawan Hans as one time grant for its ambitious expansion plan needs to be seriously considered. Keeping in view the urgent need for fleet replacement and augmentation, the Committee recommends that adequate provisions may be made in the budget for Pawan Hans to cater to its imminent requirements.
51. The Ministry, in its written reply, has stated that the construction work of Rohini heliport has been completed and permission for operations from DGCA and MHA has been obtained. The Secretary, Ministry of Civil Aviation while deposing before the Committee, stated that the heliport at Rohini was inaugurated on 28th February, 2017.
52. The Committee hopes that the heliport at Rohini will become operational soon. The Committee is of the view that the helicopter industry has tremendous potential to provide services in the tourism sector, disaster management etc. The Committee desires that more 17 such heliports may be set up throughout the country. The Committee reiterates its recommendation that Air India and Pawan Hans can work together to ensure seamless travel on hub and spokes basis- bringing passengers from smaller places to various tourist spots. The passengers are facing lot of travel problems due to the location of airports in far away places in Hyderabad and Bengaluru. The Committee desires that the Government may explore the possibility of utilising the Pawan Hans helicopters to operate air taxis for providing last mile connectivity from airports such as Bengaluru and Hyderabad to the city areas.
Regional Connectivity Scheme
53. As per the Annual Report (2016-17) of the Ministry, the Government recently issued Regional Connectivity Scheme (RCS)-UDAN as envisaged in the National Civil Aviation Policy with the twin objectives of promoting balanced regional growth and make flying affordable for the masses.
54. The Ministry has stated in its reply that a token provision has been made under the said scheme for 2017-18 as the requisite approval from the Cabinet for the scheme of revival of airports has not been received yet. The head has been created only to cater to the revival of airports and not for the entire scheme of regional connectivity which is being funded through the Regional Connectivity Fund (RCF). RCF is being funded through a levy on passenger tickets and not through budgetary support. Once the CCEA approval is obtained for the revival of airports, then funds would be sought in the Supplementary Demands for Grants.
55. The North Eastern States of the country has been neglected for a long time as far as air connectivity is concerned. The Committee is aware of the fact that a large number of small cities of the North Eastern States are yearning for air connectivity for so many years. The Committee is of the view that the Government should understand that the terrain of the States are such that road and rail connectivity is a difficult proposition in many areas. Air connectivity is the main mode of transport for majority of the population of North East to other parts of the country and these States are demanding overall economic development. The Committee feels that better air connectivity is the only solution to opening up the economy of North Eastern States. Therefore, the Committee notes that it is very essential to give a differential treatment to the North Eastern States as far as air connectivity is concerned. The Committee recommends that the North Eastern States should get more regional air connectivity scheme in addition to the one proposed in the National Civil Aviation Policy.
Combined Headquarter building
56. The Ministry, in its written reply, has stated that a proposal for combined Headquarter Building of DGCA, BCAS, AAIB and AERA has been approved with the total cost of ` 303.80 crore and MOU has also been signed with Airport Authority of India for its construction. It is also proposed to release ` 44.09 crore in the current financial year to Airport Authority of India. The building is likely to be completed within 36 months from award of tender. ` 16.70 crore has already been released to AAI.
57. The Committee is aware that the construction of Headquarter to these agencies are lingering for a long period. The Committee desires that steps should be taken by the 18
Ministry to ensure that the construction of the combined Headquarter building are initiated at the earliest.
Greenfield Airport in Kushinagar, Uttar Pradesh
58. The Ministry, in its written reply, has stated that the airstrip at Kushinagar belongs to the Govt. of Uttar Pradesh. The proposal from the State Government for constructing a Greenfield Airport at Kushinagar has been in-principally approved by the Ministry of Civil Aviation on 21.2.10 under the Greenfield Airport Policy of Government of India.
Government of UP had invited RFQ for development and operation of Kushinagar under PPP in January,2015, and it was re-invited 2-3 times but no response received. The Chief Secretary vide his letter dated 9th Oct.2014 had requested the Secretary, MoCA to take over and develop the airport through AAI.
AAI has made the Master Plan and had discussions with Govt. of UP on 10th April 2015 wherein it was agreed to form an SPV / JVC to design, finance, build, operate and maintain world class Greenfield airport at Kushinagar. Accordingly as per order dated 22nd June 2015 UP Govt. has constituted a committee of officials of AAI and state Govt. The meeting of committee was held on 10th July, 2015 wherein issues regarding formation of SPV and its modalities/ core functioning were deliberated. Subsequent meeting was held on 11th Aug. 2015 in the office of Secretary, Civil Aviation, GoUP. It was brought out by AAI that for the success of this project the State Government shall provide lease of the land on concessional terms to the SPV, waiver of taxes, provision of other support services like water supply, power supply and road connectivity etc. It had also been emphasized by AAI that the city side development will play a pivotal role in cross subsidizing the capital and operational cost of this project. AAI has requested State Govt. to acquire additional land for city side development to ensure that the development of world class aviation infrastructure takes place.
Further, AAI team visited Kushinagar on 06th Nov., 2015 to assess the quantum of land required. The land area proposed to be acquired was principally agreed by DM Kushinagar subject to availability of the same. Based on the details received from DM, AAI has prepared the Master Plan and sent to GoUP on 16/5/16. There is no further response on this from the State Government.
Meanwhile the Govt. of Uttar Pradesh has taken up the construction of Aerodrome, through M/s RITES, suitable for A-320 / B-737 operations (Runway – 3200m length, Apron-5 bays). The work is in progress.
59. The Committee notes that Kushinagar airport has a great potential to attract a large number of tourists especially the Budhist tourists who are visiting India and for overall economic development of the surrounding region. The Committee, therefore, recommends that Government of India should take necessary steps in co-ordination with the Government of Uttar Pradesh to ensure that the Kushinagar airport is ready for operationalisation soon.
Ongoing work at Calicut Airport
60. The Ministry, in its written reply, has given the status of ongoing work at Calicut Airport and probable date of completion as below: 19
(i) Construction of New International Arrival Block and internal modification of existing International Passenger Terminal Building:
z Peak House Passenger Handling Capacity will increase from 916 to 1500
z Additional Area 17000 Sqm. to be constructed
z AA&ES Cost : `120.19 crores
z Physical Progress : 39%
z Financial Progress : `16.54 crore
z PDC : June 2018
(ii) Re-carpeting and Strengthening of Runway
z AA&ES Cost : `56.11 crores
z Physical Progress : Major work completed. Minor rectification works are underway
z Financial Progress : `42 crore
z PDC : 28.02.2017
61. The Committee notes that the renovation work of the Calicut airport has been going on for a long time causing inconvenience to the travelling public. The Committee desires that the renovation work at the Calicut airport may be completed at the earliest and that the progress of the work may be closely monitored. The Committee further notes that the strengthening of the runway has been completed.
62. The Committee notes that after having done the major renovation works at the Calicut airport recently, the airport has now got the operational capacity to handle major type of aircraft including 4D category.
63. The Committee was informed that with the completion of the strengthening of runway, the Calicut airport is fully functional now. The Committee notes that the area in and around Kozhikode is inhabited by a large number of Muslim population who used to undertake Haj Pilgrimage. Therefore, starting Haj operations from the Calicut airport may help a large number of people economically. The Committee, therefore, recommends that Haj Services may be started from Calicut Airport while continuing the Haj Services at Kochi airport also.
Revival of airports
64. The Ministry has informed that a token provision has been made for the revival of airports in the budget estimates for 2017-18 as the proposal has been submitted for Cabinet approval after the inter-ministerial consultations. After its approval, Ministry of Finance will be requested for provision of funds in the Supplementary Demands for Grants. As per the proposal, 15 airports are targeted for revival in 2017-18 at a cost of ` 90.00 crores each. 20
65. The Committee desires that commercial, economic and trade potential may be the criteria for revival of airports. The Committee hopes that the Cabinet approval for the revival of unserved and underserved airports will materialize soon. The Committee desires that sufficient funds may be made available for the scheme. The Committee recommends that the airports at Cooch Behar and Durgapur may also be considered for its revival soon.
New Airports
66. The Ministry, in its written reply, has stated that the number of proposals for new airports accepted by Government in the last two years are:
(i) 2014-15 Nil
(ii) 2015-16 as under:-
(a) Gujarat: Government of India granted ‘in-principle’ approval to Dholera International Airport Company Ltd. (DIACL) for setting up of a Greenfield airport at the site near Navagam Village, Gujarat under ‘public use’ on 27.01.2016
(b) Rajasthan: Site clearance has been granted for setting up of a Greenfield airport at Kotkasim Tehsil Bhiwadi, in Alwar District, Rajasthan on 18.11.2015.
(iii) 2016-17 as under:-
(a) Andhra Pradesh:
z In-principle approval has been granted for setting up of a Greenfield airport at Dagadarthi, Nellore Distt., Andhra Pradesh on 07.10.2016
z In-principle approval has been granted for setting up of a Greenfield airport at Bhogapuram near Vishakhapatnam, Andhra Pradesh on 07.10.2016
z In-principle approval has been granted for setting up of a Greenfield airport in Oravakallu in Kurnool Distt. Andhra Pradesh on 07.10.2016.
(b) Telangana:
z Site clearance has been granted for obtaining ‘in-principle approval for Greenfield airport in Kothagudem, Distt. Khammam in Telangana on 07.10.2016.
67. The Committee takes note of the proposals for new airports, accepted by the Government. The Committee hopes that the construction of these airports will be taken up with the State Governments at the earliest.
National Civil Aviation Policy
68. As per the Annual Report (2016-17) of the Ministry, for the first time since independence an integrated Civil Aviation Policy has been approved by the Cabinet on 15th June, 2016 and notified in the Gazette on 29th June, 2016.
69. The salient features of the National Civil Aviation Policy are as under:- 21
z Ensure safe and sustainable aviation industry through use of technology and effective monitoring.
z Enhance regional connectivity through fiscal support and infrastructure development.
z Enhance ease of doing business through de-regulation simplified procedure and e-governance.
z Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace manufacturing and skill development.
The Policy covers the following areas:-
(i) Regional Connectivity
(ii) Safety
(iii) Air Transport Operations
(iv) Route Dispersal Guidelines
(v) 5/20 Requirement
(vi) Bilateral Traffic Rights
(vii) Code-Share Agreements
(viii) Fiscal Support
(ix) Airports
(x) Airports Authority of India
(xi) Air Navigation Services
(xii) Aviation Security
(xiii) Helicopters
(xiv) Charters
(xv) Maintenance, Repair and Overhaul
(xvi) Ground Handling
(xvii) Air Cargo
(xviii) Aeronautical ‘Make in India’
(xix) Aviation Education
(xx) Sustainable Aviation
(xxi) Miscellaneous
70. The Committee welcomes the initiatives taken by the Civil Aviation Ministry and hopes that the implementation of the National Civil Aviation Policy will establish an 22 integrated eco-system in the civil aviation industry which will lead to significant growth in the civil aviation sector.
71. Vacancies in various Organizations of the Ministry
(i) DGCA
Status of existing vacancies in DGCA as on 10.02.2017
Group of Posts Total Sanction No of Posts filled No of posts Strength vacant
Gr A 659 440 219
Gr B 215 85 130
Gr C 511 217 294
TOTAL 1385 742 643
In addition to 440 Group A filled posts, 06 consultants are working as Cabin Safety Inspector on contractual basis. Further, 13 candidates recommended by the UPSC will join shortly as their pre-appointment formalities are already underway and recruitment proposal for filling up of 04 various Group A posts have already been accepted by the UPSC.
Besides, 171 Ministerial Posts (05 Gr A + 121 Gr B + 45 Gr C) which are to be filled by Department of Personnel and Training/Department of Official Language etc., are also vacant. Proposal to fill up 80 Group C Posts through Direct Recruitment basis has also been sent to SSC.
DGCA takes timely action to fill all the vacant posts through either direct recruitment, deputation or promotion basis, which is a continuous process. Moreover, process to amend the Recruitment Rules has also been initiated to facilitate filling up of vacant posts in the DGCA.
(ii) BCAS
Details of sanctioned posts and vacancy position of BCAS
I. OPERATIONAL
Sl. Name of posts Filled Sanctioned Total Vacant No.
1 Director General (HAG) 1 1 0
2 Joint Director General PB- 4 + (GP-` 10,000) 0 1 1
3 Deputy Director General PB- 4 (GP-` 8,900) 2 3 1
4 Joint Director PB-3 (GP-Rs.7600/-)*/ Regioal 1 24 23 Director
5 Dy. Director 8 20 12
6 Asstt. Director PB- 3 (GP- `5400) 12 30 18 23
Sl. Name of posts Filled Sanctioned Total Vacant No. 7 Senior Aviation Security Officer PB- 2 0 46 46 (GP ` 4600)
8 CASLO Cordinator 0 20 20
9 Aviation Security Officer PB- 2 (GP- `4200) 7 86 79
10 Dy. Aviation Security Officer PB-1 (GP- `2400) 5 81 76
11 Senior Aviation Security Assistant PB- 1 12 44 32 (GP ` 2000)
12 Aviation Security Assistant PB- 1 (GP- `1900)** 25 48 23
13 Driver Special Grade PB-2 +4200 1 2 1
14 Driver Grade I PB-1 +2800 1 9 8
15 Driver Grade II PB-1 +2400 1 9 8
16 Driver (Ordinary Grade) PB-1 + 1900 3 6 3
17 Dispatch Rider PB-1 + 1900 9 23 14
TOTAL 88 454 366
II. OFFICIAL LANGUAGE
18 Asstt. Director (OL) PB- 3 (GP- `5400) 1 1 0
19 Sr. Translator PB-2 + 4600 1 1 0
20 Jr. Translator PB-2 +4200 0 1 1
TOTAL 23 1
III SECRETARIATE STAFF
CSS/CSCS
21 Jt. Director (Admn. & Fin.) PB-3 +7600 1 1 0
22 Deputy Director (Admn./Pers.) PB- 3+GP-` 6600 2 2 0
23 Section Officer PB-2 +4800 2 22 20
24 Assistant Section Officer PB-2 +4600 17 30 13
UDC 10 -1
CSSS
25 Sr. PPS to Director General PB-3 +7600 1 1 0 24
Sl. Name of posts Filled Sanctioned Total Vacant No. 26 PPS to Joint DG 2 2 0
27 PS to Deputy DG PB-2+4800 3 3 0
28 Steno Grade C to JD PB-2+ 4600 0 44 44
29 Pool of Steno Gr. D to AD PB-1 + 2400 7 28 21
TOTAL 36 133 97
GRAND TOTAL (I+II+III) 126 590 464
After restructuring of BCAS number and nomenclature of all posts have been changed. Accordingly, RRs for the all posts have been amended. All vacancies will be filled up after amendment of RRs for the above mentioned posts.
MOCA has approved the restructuring of BCAS vide its order dated 4.2.2016. Consequently, the numbers and nomenclature of all posts have been changed. Also RRs for the all posts are proposed to be amended. The amendments have been approved by MOCA/DOPT. The amended RRs for the Group “A” and “B” have been submitted to UPSC for approval. As regards Group “C”, the amended RRs have been submitted to Ministry of Law with approval of MOCA/DOPT. All vacancies will be filled up after amended RRs for the above mentioned posts are approved.
(iii) Pawan Hans Ltd.
The Ministry of Civil Aviation vide their letter No. AV.13015/33/97-VE dated 17/11/1998 issued directives stating that there should be a freeze on further recruitment except the unavoidable and essential posts, which may be filled up with the approval of the Board of Directors of the Company. It was also advised that the above instruction/directions must be scrupulously complied with. Accordingly, keeping in view the operational requirement of the Company, only essential and unavoidable posts are being filled up with the approval of Board/Competent Authority.
(iv) Air India Ltd.
The details in this regard are as under:
CLUSTERWISE SF-EXISTING AS ON 01.03.2017 (Excluding Air India Subsidiaries)
Sl. Clusters SF Existing Surplus/ No. Deficit
1. Executive Directors 19 19 0
2. General Managers 47 36 -11
3. Dy. General Managers 114 81 33
4. Cluster-I (Sr. Mgr/Agm & Sr.Agm) 370 586 216 25
Sl. Clusters SF Existing Surplus/ No. Deficit 5. Cluster-ii (Am/Dy.Mgr/Mgr) 1334 3423 2089 6. Cluster-iii 2295 2030 -265 7. Cluster-iv 923 2456 1533 8. Security Deptt (Contractual 2029 Through Aiatsl & Aasl)
9. TOTAL 7131 8631 1500 10. CMD/JMD 2 1 -1 11. Functional Directors 4 3 -1 12. Dgm-Ops 184 13. Line Pilot 1188 14. Cabin Crew Including Officers 2002 15. Ed-Security 1 1 0 16. Engineering 108 59 -49
GRAND TOTAL 7246 12069 4823
As far as appointment in Air India Limited is concerned, it is mentioned that the Government of India, Ministry of Civil Aviation imposed a ban on recruitment on non-operational category in erstwhile Indian Airlines and Air India long back. Consequent to the merger of two erstwhile airlines (Indian Airlines and Air India), the Standard Force of the merged entity has been defined by a Manpower Restructuring Committee. The on roll position of employees’ vis-à-vis approved strength is as per the table given above. However, no ban was imposed by MOCA for operational category like Pilots and Cabin Crew. The recruitments are being made as per the organizational requirement for which information is available on Air India Web Site as and when the vacancy occurs. Additionally, as and when the Government permits Air India Limited to make recruitment in non-operational category, the vacancies will be notified in the leading newspapers/displayed on our website: www.airindia.in. Further the recruitment policy of merged Air India is under the Formulation Process and it will be implemented after the approval by Board of Air India. (v) Airports Authority of India:
Level Vacancy Action in hand Remarks to fill up vacant posts 1 2 3 4 Executives 2799 2285 Advertisement has been released Group A & B against vacant posts and action to 26
1 2 3 4 Non 1698 – fill up the same has been taken & Executives Written Test wherever applicable has Group C been conducted and Interview/ Selection process is under completion. TOTAL 4497 2285
72. The Committee takes note of the unfilled posts in various organizations of the Ministry. The Committee is of the view that the existence of vacancies will hamper the effective functioning of the organizations. The Committee desires that the Ministry should pursue the matter with UPSC and other concerned agencies so that the bottlenecks in this regard are sorted out. The Committee further desires that the amendment of Recruitment Rules may be completed at the earliest. The Committee recommends that advance action may be taken based on the assessment of expected vacancies. Air Sewa 73. As per the Annual Report of the Ministry, AirSewa is an initiative of the Ministry of Civil Aviation launched on 25th November, 2016 to offer people a convenient and hassale free air travel experience. It operates through an interactive web portal (airsewa.gov.in) as well as through a mobile app for both android and iOS platforms. The portal includes a mechanism for grievance redressal, back office operations for grievance handling, flight status/schedule information, airport information and FAQs. 74. The Committee notes that the AirSewa initiative has integrated various stakeholders in aviation sector with whom an air traveler has to interact during the air travel. The Committee appreciates this initiative which has been launched for the benefit of the air travelers. Need for greater co-ordination among the Union Ministries 75. The Committee feels that an effective co-ordination mechanism among the Ministry of Culture, Ministries of Tourism, Civil Aviation and Road Transport and Highways is needed in order to ensure that the places of tourist and cultural importance are integrated seamlessly with well connected roads and airports and are provided with required facilities like budget hotels, taxis, souvenir shops, restaurants etc. The Committee, therefore, recommends that the Ministry of Civil Aviation may co-ordinate in formulating an action plan with the above said Ministries in this regard and that the Ministry of Tourism may be made the nodal Ministry for this purpose. Exorbitant airfares 76. The Committee received numerous complaints about high air fares and high charges levied by airlines and airports operators making it very expensive for the air travelers. 77. The Ministry, in its written reply, has stated that at present, airfares are not controlled by the Government but varies on the market forces of demand and supply. This is a global practice in the aviation industry. Airlines are free to fix the reasonable tariff under the provision of Subrule (1) of Rule 135, Aircraft Rules 1937 having regard to all relevant factors, including the cost of operation, characteristics of service, reasonable profit and the generally prevailing tariff. 27
78. While the Government no longer regulates the fares that are charged, but it is ensured by DGCA that considerable information is provided to the public in a transparent manner with respect to airline fares. Air Transport Circular 05 of 2009 issued by DGCA for scheduled domestic airlines to display the airfare as per the template given in the circular, compliant to Rule 135. For both domestic and international markets, carriers must provide disclosure of the full price to be paid, including government taxes/fees carrier charges, as well as fees payable to airport operators in their advertising, on their websites and on the passenger’s e-ticket confirmation.
79. Regarding Airline Fare Structure it is to state that the domestic airline pricing runs in multiple levels (bucket or RBD) which is in line with the practice followed globally. The lower fare in the fare bucket is available for advance booking much earlier. As time lapses and date of journey approaches closer, the fare in higher side of fare bucket is made available as per the respective airline policy. Advance Purchase Scheme offers low fares when tickets are booked 90 days, 60 days, 30 days, 15 days and 7 days prior to departure. Under the immediate purchase, fares are offered in multiple levels or buckets (up to about 14 levels) and the fares move to higher buckets as the lower ones get filled. This is done through Inventory Management Process.
80. In addition to above there are many other factors like Season, Holidays, Festivals, Long weekends, Fuel Prices, Competition on route, Distance of route and Events (sports, fairs, contests, etc.), etc. which keeps on changing the airfare.
With the repeal of Air Corporations Act in March 1994, the above provision was dispensed with by the Government. The Indian domestic aviation was totally deregulated. Airlines were made free to induct capacity with any aircraft type, free to select whatever markets and network they wish to service and operate and also free to fix any fares they want.
81. The Committee takes note of the fact that there are no existing rules and regulations which are working in the way of regulating airfares after the repeal of Air Corporation Act in 1994. The Committee desires that the Ministry of Civil Aviation should specify the limitations, legal and otherwise, which need to be amended or other measures to be put in place to tackle this problem after consulting all the stakeholders. We are a developing country and many of the pricing mechanism applicable to the developed countries may not suit the Indian people and Indian conditions. The Ministry should consider fixing an upper limit for every sector, especially in the economy class of air fares.
82. The Committee has noticed that the airfares from airports of Kerala to the Gulf Sector are quite exorbitant compared to the foreign carriers which are offering a very less air fare. Many of the travelers who are utilizing the Gulf sectors are migrant labourers and their helplessness should not be exploited by the airlines. The Committee recommends that the Ministry of Civil Aviation and DGCA should intervene effectively to control the artificially created exorbitant prices in the Gulf Sector.
83. The Committee also notes that even after 50% reduction of the ATF prices over a period of time, the airlines have not passed on the benefit of reduction in ATF prices to the consumers. The Committee recommends that the Ministry should take effective steps to ensure that the airlines pass on the benefit to the travelers by reducing the air fares and inform the Committee about the specific steps taken in this regard and the outcome thereof. 28
High Price of Aviation Turbine Fuel
84. The Committee understands that the price of ATF in India is higher than the price prevailing in competing hubs. The comparison of ATF prices in India with competing hubs is:-
Location Price/Kilolitre(USD) India 1400 Singapore 825 Bangkok 880 Kuala Lumpur 810 Dubai 840
85. The Secretary while deposing before the Committee stated that on several occasions, the Ministry of Finance was requested to bring ATF within the ambit of GST and that it was turned down on the ground that a Constitutional amendment is needed to bring ATF within the ambit of GST.
86. The Committee takes note of the fact that a major difficulty being faced by airlines is the high cost of ATF which is further aggravated by taxes and that due to the distortion in the price structure caused by the taxation policies, the financial liability of airlines is getting strongly affected. In this regard, the Committee urges that the Ministry of Petroleum and Natural Gas may consider reducing the basic price of ATF, the Ministry of Finance may consider reducing the excise duty levied on ATF and the State Governments may consider reducing the VAT on ATF.
Institutes for Pilot training
87. The Committee learnt that there is acute shortage of trained pilots/commanders in India and that currently, 23 out of 40 institutes for Pilot training are non-operational.
88. The Ministry of Civil Aviation informed the Committee that India currently has over 4500 pilots, including 400 expatriates. With the doubling of fleet size expected by 2017, India will require a total of around 800 pilots per year. Currently, the pilot training institutes are training only 100 pilots annually. Thus there is a shortage of 700 pilots every year.
89. The Committee notes that there has been a huge jump in the number of aircrafts used for scheduled operations by various airlines. This implies the need for addition of pilots in the coming years. The Committee observes that there is an imminent need for pilots/ commanders which can be catered to by the pilot training institutes. The Committee desires that the Ministry may take steps to look into the reasons for the institutes for pilot training being made non-operational and revive them.
Buggy services at the airports
90. The Committee has learnt that the buggy services at the IGI airport, Delhi are outsourced by the airport operator. The parking for buggies has been made far away from the arrival and departure gates. The actual and convenient space for passengers has been allotted to shopkeepers at the cost of the passengers on lease basis due to which the buggy services are available after 29 walking a long distance and the services are not provided to even elderly and physically challenged passengers owing to shortage of buggies in all the four metro airports.
91. The Committee, therefore, recommends that the number of buggies in all the four metro airports should be increased according to the requirement of elderly and physically challenged passengers and buggy services should be made available near the arrival and departure gates to save time. Any dereliction in this regard should be treated as deficiency of services and violation of OMDA Agreement and appropriate penalty may be imposed on the airport operator.
IGI Airport, Delhi
92. During the deliberations of the Committee, the Committee learned that there are a large number of shops in the Delhi airport which are cluttering and encroaching into the public area meant for passenger amenities. This is also affecting the movement of buggies. The Committee urges upon the Ministry of Civil Aviation to prevent the Delhi Airport authorities from opening of shops in an unscrupulous way which are jeopardizing the passenger amenities.
Audit Paras
93. The Committee takes note of the inordinate delay that is being caused by the Ministry for furnishing reply to audit paras of the year 2013, regarding land management and non-realization of due share in the revenue of DIAL which is still under process.
94. The Committee desires that the Ministry may furnish the replies of the audit paras without further delay under intimation to the Committee.
95. The Committee was informed that Indigo airlines is getting priority over other airlines in take off and landing. The Committee has taken a serious view on the reported special privilege to a specific airline. The Committee recommends that the DGCA and Ministry of Civil Aviation should conduct an inquiry into the reported matter of priorities issue and intimate the Committee about its outcome.
96. The Committee was informed that the President and Prime Minister of India are eligible for priority landing and take off in any airports of India whereas the Governors and Chief Ministers are denied such facilities even in their own States. The Committee observes that Governor and Chief Minister are the Head of State and Head of Government in their respective States and they should get priority landing rights at par with the President of India and Prime Minister of India. The Committee, therefore, recommends that the Ministry of Civil Aviation should modify the relevant rules and regulations to enable the Governors and Chief Ministers for priority landing in their respective States.
97. It has been brought to the notice of the Committee that the Rules and Procedure of the Customs Department differ from airport to airport resulting in avoidable harassment to exclusively domestic passengers when they are compelled to board/alight at International terminals. The Committee desires that the Ministry of Civil Aviation may evolve domestic passenger friendly uniform treatment system in this regard at the airports. 30
98. The Committee has noted that the international connectivity to European countries, USA and Canada is non existent from the Kolkata airport. A large number of passengers have to go either to Delhi or Mumbai to catch their connecting flights to such destinations. The Committee desires that the Ministry may take up the issue with the scheduled airlines to start operations from Kolkata to European countries, USA and Canada.
99. The Committee appreciated the fact that there is an overall improvement in the Civil Aviation sector during the tenure of the current Secretary, Ministry of Civil Aviation. The Committee also would like to appreciate that Air India is showing signs of revival and making operational profits with the active leadership of its current Chairman and Managing Director. RECOMMENDATIONS/OBSERVATIONS — AT A GLANCE
ASSESSMENT OF THE DEMANDS FOR GRANTS (2017-18) OF THE MINISTRY
The Committee notes that ` 2702.40 crores has been allocated for the Ministry of Civil Aviation for 2017-18 against the allocation of ` 3452.37 crores at RE stage in 2016-17. (Para 10)
The Committee notes that there is considerable shortfall in budgetary allocation for 2017-18 especially on the Revenue side and that the Ministry of Finance has not intimated any reason for this reduction. Keeping in view the considerable growth of the civil aviation sector, Committee is of the considered view that with the present allocation, it would be difficult to run the existing schemes and other activities undertaken by the Ministry. Therefore, the Committee recommends that the Ministry should actively pursue the matter of increasing the allocation in the first supplementary and at the RE stage in the current financial year 2017-18, with the Ministry of Finance. (Para 14)
The Committee may be apprised of the details of the Skill Development Scheme at the implementing stage. (Para 17)
TWELFTH FIVE YEAR PLAN
The Committee takes note of the projects initiated by the Ministry during the Twelfth Five year Plan. (Para 19)
AIR INDIA LIMITED
The Committee feels that the reduction in equity infusion to the tune of ` 787 crores will adversely affect the financial and operational performance of the company since it may be forced to take loans from banks and financial institutions at a higher interest rate to meet the short fall, which was not contemplated under the Financial Restructuring Plan. The Committee, therefore, is of the considered view that such short fall, at this stage when the company is presently placed at a critical position in achieving the TAP targets, should be avoided. Since the committed financial support from the Government is vital to sustain the momentum of performance of Air India, the Committee strongly recommends that the full amount of equity infusion should be restored to Air India. The Committee recommends that in future, the amount committed under the TAP should be allocated to Air India at the BE stage itself. (Para 22)
The Committee was informed by the Secretary that the profit of Air India has been severely dented to the tune of `1000 crore due to rupee depreciation and foreign exchange variation. The Ministry of Finance has not taken into account the factor of rupee depreciation and foreign exchange variation while deciding the equity infusion. The Committee, therefore, recommends that if the intention of the Ministry of Finance is the revival of Air India, then the former should seriously consider the factors which are beyond
31 32 the control of Air India such as depreciation of rupee and foreign exchange variation, while deciding the amount of equity infusion. (Para 23)
The Committee further recommends that the Ministry of Civil Aviation may take up this matter with the Ministry of Finance for the restoration of the full amount of Equity Infusion of ` 2587 crores as requested for in the Annual Plan for the financial year 2017-18 by Air India Ltd. (Para 24)
The Committee appreciates Air India for making operational profits in the financial year 2015-16. The Committee hopes that Air India would register further profits in the coming months. The Committee emphasizes the need for micromanaging routes and timings of Air India flights to make Air India more competitive and passenger friendly. (Para 26)
During the deliberations of the Committee, many Members of the Committee have complained that the catering services in Air India aircrafts are not up to the mark and that it needs improvement to attract more passengers. The Committee notes that this is an oft repeated complaint which needs serious attention of the top management of Air India and Ministry of Civil Aviation. The Committee urges upon the Ministry to evaluate the standards of the catering services in Air India flights and take necessary steps to improve the same. The Committee may be informed about the action taken in this regard. (Para 27)
AIRPORTS AUTHORITY OF INDIA
The Committee notes that earlier, the cargo sector was dominated by private airlines. The Committee welcomes the entry of AAI into the cargo sector. (Para 29)
The Committee feels concerned about the huge amount of outstanding dues of AAI for a long time. AAI, being the highest revenue generator, has to be actively helped by the Ministry of Civil Aviation in this regard by taking it up with the defaulting Organizations and Ministries including legal recourse. The Committee recommends that consistent steps should be taken by AAI to recover the outstanding dues. (Para 32)
The Committee notes that ` 294.69 crores is due from now defunct Kingfisher Airlines. The Committee also notes that legal suit has been filed against Kingfisher Airlines to recover the dues. The Committee observes that the Airports Authority of India allowed the accumulation of dues to such a high level in violation of all the existing rules and procedures in practice. The Committee recommends that Airports Authority of India should be cautious in future to ensure that no individual stakeholder/airlines is accumulating such high levels of dues. The Committee also recommends that Airports Authority of India may conduct an internal inquiry (i) to fix the responsibility of Airports Authority of India officials for the accumulation of dues by Kingfisher Airlines and (ii) to strengthen the systems and procedures to prevent the recurrence of accumulation of dues. The Committee may be intimated about the outcome of the internal inquiry. (Para 33)
The Committee hopes that the monetization of AAI land will generate considerable revenue to AAI. (Para 36)
The Committee recommends that Airports Authority of India should take initiatives to establish sufficient commercial activities at the Kolkata airport to generate reasonable level 33 of non-aeronautical revenue. The Committee is afraid that the neglect of the airport may be a prelude to making it a loss making airport which may pave the way for privatization of services at the airport. (Para 38)
It has been brought to the notice of the Committee that Gir Forest which is one of the sanctuaries for Asiatic Lion is a much visited area by the domestic as well as foreign tourists. However, there is no air operations anywhere near the sanctuary. The Committee noticed that there is an airstrip near Gir which can be developed to improve air connectivity. The Committee, therefore, recommends that Airports Authority of India should take the lead to enable the Gir airstrip to start commercial air operations. (Para 39)
During the deliberations of the Committee, it was brought to the notice of the Committee that the passenger amenities at the Ahmedabad airport is in bad shape. The officials of the airport are not taking sufficient steps to improve the facilities at the airport. The Committee, therefore, recommends that Airports Authority of India should intervene immediately to ensure that passenger facilities are improved at the Ahmedabad airport. (Para 40)
BUREAU OF CIVIL AVIATION AUTHORITY (BCAS)
The Committee, therefore, reiterates its recommendation made in its 231st Report that the senior positions of BCAS may be held exclusively by the cadre officials of BCAS. The Committee further recommends that the Recruitment Rules of BCAS should be amended in such a way that the cadre officers may, without any hindrance, be promoted up to the level of Joint Director General. The Committee desires that the Ministry may submit a note in this regard for the consideration of the Committee. (Para 42)
DIRECTORATE GENERAL OF CIVIL AVIATION (DGCA)
The Committee notes the allocation made for DGCA. (Para 44)
INDIRA GANDHI RASHTRIYA URAN AKADEMI (IGRUA)
The Committee desires that IGRUA may be allocated adequate funds to ensure that the steps taken to make IGRUA self sufficient turn out to be fruitful. (Para 46)
PAWAN HANS LTD.
The Committee notes that Pawan Hans is a profit making Organization. However, this profit alone will not be adequate for its own fleet expansion and fleet replacement. The Committee is sure that the investment made in Pawan Hans Ltd. would generate adequate returns to the Government. The Committee, therefore, reiterates its recommendation made in its 231st Report that giving ` 600 crores to Pawan Hans as one time grant for its ambitious expansion plan needs to be seriously considered. Keeping in view the urgent need for fleet replacement and augmentation, the Committee recommends that adequate provisions may be made in the budget for Pawan Hans to cater to its imminent requirements. (Para 50)
The Committee hopes that the heliport at Rohini will become operational soon. The Committee is of the view that the helicopter industry has tremendous potential to provide 34 services in the tourism sector, disaster management etc. The Committee desires that more such heliports may be set up throughout the country. The Committee reiterates its recommendation that Air India and Pawan Hans can work together to ensure seamless travel on hub and spokes basis- bringing passengers from smaller places to various tourist spots. The passengers are facing lot of travel problems due to the location of airports in far away places in Hyderabad and Bengaluru. The Committee desires that the Government may explore the possibility of utilising the Pawan Hans helicopters to operate air taxis for providing last mile connectivity from airports such as Bengaluru and Hyderabad to the city areas. (Para 52)
REGIONAL CONNECTIVITY SCHEME
The North Eastern States of the country has been neglected for a long time as far as air connectivity is concerned. The Committee is aware of the fact that a large number of small cities of the North Eastern States are yearning for air connectivity for so many years. The Committee is of the view that the Government should understand that the terrain of the States are such that road and rail connectivity is a difficult proposition in many areas. Air connectivity is the main mode of transport for majority of the population of North East to other parts of the country and these States are demanding overall economic development. The Committee feels that better air connectivity is the only solution to opening up the economy of North Eastern States. Therefore, the Committee notes that it is very essential to give a differential treatment to the North Eastern States as far as air connectivity is concerned. The Committee recommends that the North Eastern States should get more regional air connectivity scheme in addition to the one proposed in the National Civil Aviation Policy. (Para 55)
COMBINED HEADQUARTER BUILDING
The Committee is aware that the construction of Headquarter to these agencies is lingering for a long period. The Committee desires that steps should be taken by the Ministry to ensure that the construction of the combined Headquarter building are initiated at the earliest. (Para 57)
GREENFIELD AIRPORT IN KUSHINAGAR, UTTAR PRADESH
The Committee notes that Kushinagar airport has a great potential to attract a large number of tourists especially the Budhist tourists who are visiting India and for overall economic development of the surrounding region. The Committee, therefore, recommends that Government of India should take necessary steps in co-ordination with the Government of Uttar Pradesh to ensure that the Kushinagar airport is ready for operationalisation soon. (Para 59)
ONGOING WORK AT CALICUT AIRPORT
The Committee notes that the renovation work of the Calicut airport has been going on for a long time causing inconvenience to the travelling public. The Committee desires that the renovation work at the Calicut airport may be completed at the earliest and that 35 the progress of the work may be closely monitored. The Committee further notes that the strengthening of the runway has been completed. (Para 61)
The Committee notes that after having done the major renovation works at the Calicut airport recently, the airport has now got the operational capacity to handle major type of aircraft including 4D category. (Para 62)
The Committee was informed that with the completion of the strengthening of runway, the Calicut airport is fully functional now. The Committee notes that the area in and around Kozhikode is inhabited by a large number of Muslim population who used to undertake Haj Pilgrimage. Therefore, starting Haj operations from the Calicut airport may help a large number of people economically. The Committee, therefore, recommends that Haj Services may be started from Calicut Airport while continuing the Haj Services at Kochi airport also. (Para 63)
REVIVAL OF AIRPORTS
The Committee desires that commercial, economic and trade potential may be the criteria for revival of airports. The Committee hopes that the Cabinet approval for the revival of unserved and underserved airports will materialize soon. The Committee desires that sufficient funds may be made available for the scheme. The Committee recommends that the airports at Cooch Behar and Durgapur may also be considered for its revival soon. (Para 65)
NEW AIRPORTS
The Committee takes note of the proposals for new airports, accepted by the Government. The Committee hopes that the construction of these airports will be taken up with the State Governments at the earliest. (Para 67)
NATIONAL CIVIL AVIATION POLICY
The Committee welcomes the initiatives taken by the Civil Aviation Ministry and hopes that the implementation of the National Civil Aviation Policy will establish an integrated eco-system in the civil aviation industry which will lead to significant growth in the civil aviation sector. (Para 70)
VACANCIES IN VARIOUS ORGANIZATIONS OF THE MINISTRY
The Committee takes note of the unfilled posts in various organizations of the Ministry. The Committee is of the view that the existence of vacancies will hamper the effective functioning of the organizations. The Committee desires that the Ministry should pursue the matter with UPSC and other concerned agencies so that the bottlenecks in this regard are sorted out. The Committee further desires that the amendment of Recruitment Rules may be completed at the earliest. The Committee recommends that advance action may be taken based on the assessment of expected vacancies. (Para 72)
AIRSEWA
The Committee notes that the Air Sewa initiative has integrated various stakeholders 36 in aviation sector with whom an air traveler has to interact during the air travel. The Committee appreciates this initiative which has been launched for the benefit of the air travelers. (Para 74)
NEED FOR GREATER CO-ORDINATION AMONG THE UNION MINISTRIES
The Committee feels that an effective co-ordination mechanism among the Ministry of Culture, Tourism, Civil Aviation and Road Transport and Highways is needed in order to ensure that the places of tourist and cultural importance are integrated seamlessly with well connected roads and airports and are provided with required facilities like budget hotels, taxis, souvenir shops, restaurants etc. The Committee, therefore, recommends that the Ministry of Civil Aviation may co-ordinate in formulating an action plan with the above said Ministries in this regard and that the Ministry of Tourism may be made the nodal Ministry for this purpose. (Para 75)
EXORBITANT AIRFARES
The Committee takes note of the fact that there are no existing rules and regulations which are working in the way of regulating airfares after the repeal of Air Corporation Act in 1994. The Committee desires that the Ministry of Civil Aviation should specify the limitations, legal and otherwise, which need to be amended or other measures to be put in place to tackle this problem after consulting all the stakeholders. We are a developing country and many of the pricing mechanism applicable to the developed countries may not suit the Indian people and Indian conditions. The Ministry should consider fixing an upper limit for every sector, especially in the economy class of air fares. (Para 81)
The Committee has noticed that the airfares from airports of Kerala to the Gulf Sector are quite exorbitant compared to the foreign carriers which are offering a very less air fare. Many of the travelers who are utilizing the Gulf sectors are migrant labourers and their helplessness should not be exploited by the airlines. The Committee recommends that the Ministry of Civil Aviation and DGCA should intervene effectively to control the artificially created exorbitant prices in the Gulf Sector. (Para 82)
The Committee also notes that even after 50% reduction of the ATF prices over a period of time, the airlines have not passed on the benefit of reduction in ATF prices to the consumers. The Committee recommends that the Ministry should take effective steps to ensure that the airlines pass on the benefit to the travelers by reducing the air fares and inform the Committee about the specific steps taken in this regard and the outcome thereof. (Para 83)
HIGH PRICE OF AVIATION TURBINE FUEL
The Committee takes note of the fact that a major difficulty being faced by airlines is the high cost of ATF which is further aggravated by taxes and that due to the distortion in the price structure caused by the taxation policies, the financial liability of airlines is getting strongly affected. In this regard, the Committee urges that the Ministry of Petroleum and Natural Gas may consider reducing the basic price of ATF, the Ministry of 37
Finance may consider reducing the excise duty levied on ATF and the State Governments may consider reducing the VAT on ATF. (Para 86)
INSTITUTES FOR PILOT TRAINING
The Committee notes that there has been a huge jump in the number of aircrafts used for scheduled operations by various airlines. This implies the need for addition of pilots in the coming years. The Committee observes that there is an imminent need for pilots/ commanders which can be catered to by the pilot training institutes. The Committee desires that the Ministry may take steps to look into the reasons for the institutes for pilot training being made non-operational and revive them. (Para 89)
Buggy Services at the airports
The Committee, therefore, recommends that the number of buggies in all the four metro airports should be increased according to the requirement of elderly and physically challenged passengers and buggy services should be made available near the arrival and departure gates to save time. Any dereliction in this regard should be treated as deficiency of services and violation of OMDA Agreement and appropriate penalty may be imposed on the airport operator. (Para 91)
During the deliberations of the Committee, the Committee learned that there are a large number of shops in the Delhi airport which are cluttering and encroaching into the public area meant for passenger amenities. This is also affecting the movement of buggies. The Committee urges upon the Ministry of Civil Aviation to prevent the Delhi Airport authorities from opening of shops in an unscrupulous way which are jeopardizing the passenger amenities. (Para 92)
AUDIT PARAS
The Committee desires that the Ministry may furnish the replies of the audit paras without further delay under intimation to the Committee. (Para 94)
The Committee was informed that Indigo airlines is getting priority over other airlines in take off and landing. The Committee has taken a serious view on the reported special privilege to a specific airline. The Committee recommends that the DGCA and Ministry of Civil Aviation should conduct an inquiry into the reported matter of priorities issue and intimate the Committee about its outcome. (Para 95)
The Committee was informed that the President and Prime Minister of India are eligible for priority landing and take off in any airports of India whereas the Governors and Chief Ministers are denied such facilities even in their own States. The Committee observes that Governor and Chief Minister are the Head of State and Head of Government in their respective States and they should get priority landing rights at par with the President of India and Prime Minister of India. The Committee, therefore, recommends that the Ministry of Civil Aviation should modify the relevant rules and regulations to enable the Governors and Chief Ministers for priority landing in their respective States. (Para 96)
It has been brought to the notice of the Committee that the Rules and Procedure of 38 the Customs Department differ from airport to airport resulting in avoidable harassment to exclusively domestic passengers when they are compelled to board/alight at International terminals. The Committee desires that the Ministry of Civil Aviation may evolve domestic passenger friendly uniform treatment system in this regard at the airports. (Para 97)
The Committee has noted that the international connectivity to European countries and USA and Canada is non existent from the Kolkata airport. A large number of passengers have to go either to Delhi or Mumbai to catch their connecting flights to such destinations. The Committee desires that the Ministry may take up the issue with the scheduled airlines to start operations from Kolkata to European countries, USA and Canada. (Para 98)
The Committee appreciated the fact that there is an overall improvement in the Civil Aviation sector during the tenure of the current Secretary, Ministry of Civil Aviation. The Committee also would like to appreciate that Air India is showing signs of revival and making operational profits with the active leadership of its current Chairman and Managing Director. (Para 99) MINUTES XI ELEVENTH MEETING
The Committee met at 2:30 P.M. on Thursday, the 2nd March, 2017 in Committee Room ‘A’, Parliament House Annexe, New Delhi.
PRESENT MEMBERS 1. Shri Mukul Roy — Chairman
RAJYA SABHA 1. Shri Ritabrata Banerjee 2. Shri Rangasayee Ramakrishna 3. Shri Rajeev Shukla 4. Shri Narendra Kumar Swain 5. Shri Lal Sinh Vadodia
LOK SABHA 7. Kumari Arpita Ghosh 8. Shri P. Kumar 9. Shri Kristappa Nimmala 10. Shri Rajesh Ranjan 11. Shri Ram Kumar Sharma 12. Shri Dushyant Singh 13. Shri Kunwar Haribansh Singh 14. Shri Shatrughan Sinha 15. Shri K. C. Venugopal
SECRETARIAT Shri J.G. Negi, Joint Secretary Shri Swarabji B., Director Shri Arun Kumar, Assistant Director Shrimati Catherine John L., Assistant Director Shri P.P. Raumon, Committee Officer
WITNESSES
Ministry of Civil Aviation Shri R.N. Choubey, Secretary Shri Arun Kumar, Joint Secretary Ms. Gargi Kaul, JS & FA Ms. Usha Padhee, Joint Secretary Dr. Renu Singh Parmar, Sr. Advisor
41 42
Shri Satyendra Kumar Mishra, Joint Secretary Ms. Suman Bala, CFC
Directorate General of Civil Aviation Shri B.S. Bhullar, DG Shri Lalit Gupta, Jt. DG Shri J.S. Rawat, Joint DG
Bureau of Civil Aviation Security Shri Jyoti Narayan, Dy. DG Shri D.K. Rana, Joint DG
Commission of Railway Safety Shri Sudarson Nayak, CCRS Shri Rajiv Kumar, Dy. CRS
Air India Limited Shri Ashwani Lohani, CMD Shri Pankaj Srivastava, Director (Commercial) Shri V. Hejmadi, Director (Finance) Shri H.R. Jagannath, CEO Shri Rohit Dubey, AM
Airports Authority of India Dr. Guruprasad Mohapatra, Chairman Shri S. Suresh, Member (Finance) Shri S. Raheja, Member (PIg.)
Pawan Hans Limited Dr. B.P. Sharma, CMD Shri T.A. Dayasagar, ED (Tech.) Shri Sanjiv Agrawal, CS & GM (legal) Shri Dhirendra Sahai, GM (Fin.)
Indira Gandhi Rashtriya Uran Akademy Shri V.K. Verma, Director
Airports Economic Regulatory Authority Ms. Puja Jindal, Secretary
Aircraft Accident Investigation Bureau Shri Bir Singh Rai, Joint DG
Rajiv Gandhi National Aviation University Shri Nalin Tandon, Vice-Chancellor 43
2. At the outset, the Chairman welcomed the Secretary and other officials to the meeting. The Chairman inter alia asked the Secretary to make a presentation on the Budget allocations made to the Ministry, expenditure and achievements made during the last year, the adequacy of budgetary provisions made to each head etc. The Committee also wanted to know about the areas where the Ministry failed to fully utilize the funds.
3. The Secretary made a detailed presentation about the Demands for Grants of the Ministry of Civil Aviation. He stated that the size of aviation industry in 2016 was ` 1.4 lakh crore compared to Railways at around ` 1.5 lakh crore. He further stated that civil aviation has achieved near rail parity.
4. The Secretary informed the Committee that AAI has ventured into Cargo business through AAI Cargo Logistics and Allied Services Ltd. which was launched on 25th October, 2016. He stated that AAI has a road map for monetization of AAI land.
5. The Secretary further stated that the heliport at Rohini was inaugurated on 25th February, 2017. He apprised the Committee that on several occasions, the Ministry of Finance was requested to bring ATF within the ambit of GST and that it was turned down on the ground that a Constitutional amendment is needed to bring ATF within the ambit of GST.
6. The Secretary informed the Committee that Pawan Hans is now diversifying into helicopter MRO business also for which it has signed MoU with Hindustan Aeronautics Limited and Airbus. He further stated that bids had been invited for regional connectivity and that bids were received for 43 unserved airports and 12 under served airports.
7. The Committee appreciated the fact that there is an overall improvement in the Civil Aviation sector during the tenure of the current Secretary, Ministry of Civil Aviation. The Committee also appreciated CMD, Air India for showing signs of revival and making operational profits during the financial year 2015-16.
8. Members of the Committee also raised various queries which were replied by the Secretary. The Chairman directed that written replies to the points not answered, may be sent within a week.
9. A verbatim record of the proceedings of the meeting was kept.
10. The meeting adjourned at 4.51 P.M. XII TWELFTH MEETING
The Committee met at 4:30 P.M. on Thursday, the 9th March, 2017 in Committee Room A, Ground Floor, Parliament House Annexe, New Delhi.
PRESENT MEMBERS 1. Shri Mukul Roy — Chairman
RAJYA SABHA 2. Dr. Prabhakar Kore 3. Shri Rangasayee Ramakrishna 4. Kumari Selja 5. Shri Rajeev Shukla 6. Shri Lal Sinh Vadodia
LOK SABHA 7. Shri Vinod Chavda 8. Shri Rahul Kaswan 9. Shri Harish Chandra Meena 10. Shri Dushyant Singh - 11. Shri Kunwar Haribansh Singh 12. Shri Shatrughan Sinha 13. Shri Manoj Tiwari 14. Shri K. C. Venugopal
SECRETARIAT Shri J.G. Negi, Joint Secretary Shri Swarabji B., Director Shri Arun Kumar, Assistant Director Shrimati Catherine John L., Assistant Director Shri P.P. Raumon, Committee Officer
2. The Chairman of the Committee welcomed the Members to the meeting. Thereafter, the Committee took up the following draft Reports for consideration and adoption:
(i) Two Hundred Forty Fourth Report on Demands for Grants (2017-18) of the Ministry of Civil Aviation;
(ii) Two Hundred Forty Fifth Report on Demands for Grants (2017-18) of the Ministry of Culture;
(iii) Two Hundred Forty Sixth Report on Demands for Grants (2017-18) of the Ministry of Road Transport and Highways;
44 45
(iv) Two Hundred Forty Seventh Report on Demands for Grants (2017-18) of the Ministry of Shipping; and
(v) Two Hundred Forty Eighth Report on Demands for Grants (2017-18) of the Ministry of Tourism.
3. After some discussion, the Committee adopted the Reports with some minor changes. The Committee decided to present/lay these Reports to both the Houses of Parliament on 17th March, 2017.
4. The Committee, accordingly, authorized the Chairman and in his absence, Shri Rangasayee Ramakrishna, M.P. and in his absence Kumari Selja, M.P. to present the Reports in Rajya Sabha. Shri K. C. Venugopal, M.P. and in his absence Kumari Arpita Ghosh , M.P. was authorized to lay the above mentioned Reports on the Table in Lok Sabha on 17th March, 2017.
5. A verbatim record of the proceedings was kept.
6. The meeting adjourned at 5.35 P.M. ANNEXURE ANNEXURE
List of witnesses who appeared before the Department-related Parliamentary Standing Committee on Transport, Tourism and Culture
2nd March, 2017
Ministry of Civil Aviation Shri R.N. Choubey, Secretary Shri Arun Kumar, Joint Secretary Ms. Gargi Kaul, JS & FA Ms. Usha Padhee, Joint Secretary Dr. Renu Singh Parmar, Sr. Advisor Shri Satyendra Kumar Mishra, Joint Secretary Ms. Suman Bala, CFC
Directorate General of Civil Aviation Shri B.S. Bhullar, DG Shri Lalit Gupta, Jt. DG Shri J.S. Rawat, Joint DG
Bureau of Civil Aviation Security Shri Jyoti Narayan, Dy. DG Shri D.K. Rana, Joint DG
Commission of Railway Safety Shri Sudarson Nayak, CCRS Shri Rajiv Kumar, Dy. CRS
Air India Limited Shri Ashwani Lohani, CMD Shri Pankaj Srivastava, Director (Commercial) Shri V. Hejmadi, Director (Finance) Shri H.R. J agannath, CEO Shri Rohit Dubey, AM
Airports Authority of India Dr. Guruprasad Mohapatra, Chairman Shri S. Suresh, Member (Finance) Shri S. Raheja, Member (PIg.)
49 50
Pawan Hans Limited Dr. B.P. Sharma, CMD Shri T.A. Dayasagar, ED (Tech.) Shri Sanjiv Agrawal, CS & GM (legal) Shri Dhirendra Sahai, GM (Fin.)
Indira Gandhi Rashtriya Uran Akademy Shri V.K. Verma, Director
Airports Economic Regulatory Authority Ms. Puja Jindal, Secretary
Aircraft Accident Investigation Bureau Shri Bir Singh Rai, Joint DG
Rajiv Gandhi National Aviation University Shri Nalin Tandon, Vice-Chancellor