Union Budget 2017 should facilitate private airport operators to raise funds by allowing them to issue tax free infrastructure bonds, recommends FICCI. In its pre-Budget 2017 memorandum, the Federation of Indian Chambers of Commerce and Industry (FICCI) said, “To facilitate the private airport operators to raise funds, it is recommended that they should also be allowed to issue tax free infrastructure bonds to the public.” “Further, the investments in these bonds should be notified for the purpose of claiming deduction under Section 80CCF of the Act by restoring section 80CCF in the Act,” it said.
FICCI also urged Finance Minister Arun Jaitley that the deduction limit under section 80CCF of the Act for investment in infrastructure bonds should be increased from Rs 20,000 to Rs 50,000.
According to Aviation minister Ashok Gajapathi Raju, the domestic aviation sector is on an “upswing”. “Indian aviation industry is on the upswing and today stands at an inflection point in its chequered history. We have recorded an exceptional growth in the past two years,” he said last month. Domestic air passenger growth has been more than 20 per cent for nearly two years while local carriers are also embarking on significant fleet expansion plans.
“Though the Airports Authority of India (AAI) as well as other private and greenfield airport operators have significant investments in the pipeline, they run the risk of falling behind the passenger growth figures,” Raju noted.
Meanwhile, the Narendra Modi government is looking to present Union Budget 2017 on February 1. The Budget is largely expected to be populist in nature, given the likely impact of demonetisation on economy and the pain that people had to face during the entire drive.
(With inputs from PTI)