Bring greenfield airports plans under project import scheme

New Delhi, March 30 | Updated: Mar 31 2006, 05:30am hrs
The Associated Chambers of Commerce and Industry of India (Assocham) has urged the finance ministry to notify all greenfield airport projects and modernisation of Delhi-Mumbai airport projects under its project import scheme so as to ensure timely implementation of the airports modernisation drive.

This scheme of the government provides for relaxation in the customs duty structure for equipment imported to put up green airport projects and their modernisation.

Currently, the finance ministry has extended this benefit to Cochin International Airport through a notification under its project import scheme.

In a representation sent to the government, Assocham president Anil K Agarwal sought the finance ministry to immediately notify greenfield airport projects and modernisation of Delhi-Mumbai airport projects under the scheme on the lines of Cochin airport so that their execution takes off with relaxed customs duty.

Greenfield airport projects and their modernisation after having been notified will attract 10% import duty on equipment imported for putting up such projects.

In normal case, the greenfield airport projects if not notified under project import scheme attract 25% of customs duty which accelerate their project cost. It has also urged the government to make projects import really encouraging and feasible with revising and reducing the customs duty applicable under Project Imports Scheme to 5% if not at 0%.

In addition, it has also requested that under the scheme, even the additional customs duty of 16% be brought down to nil or the minimum rate.

The chamber is of the view that modernisation of Delhi and Mumbai airport projects under the will help attract large number of private participation, which will encourage competition and facilitate their modernisation drive at a faster pace.

GMR Hyderabad International Airport, being a greenfield airport and Delhi International Airport project would be incurring a large investment on acquiring capital investments as well as on developing basic infrastructure at the site during the year 2006-07 and 2007-08.

A reduction in the import duty will help the development of these projects with world class facilities, feels the chamber.