Sunday, January 06, 2013

Ajit Singh to have final say on jet import

NEW DELHI: In yet another move to overrule the Prime Minister's office, the Ajit Singh-led aviation ministry has decided that the Jat leader will be the final approving authority for anyone wishing to import aircraft to India.

The aviation ministry used to have an empowered aircraft acquisition committee (AAC) headed by its additional secretary-cum-financial advisor that would clear requests from airlines, charter companies and private individuals to bring in aircraft. The empowered status of the AAC was withdrawn some months back and UPA's crucial alliance partner, Ajit Singh, was made the final approving authority. The PMO on October 30 had sent a letter to the aviation ministry, asking it to keep "in abeyance" its decision to give the Jat leader the final authority to clear the recommendations of the AAC. The letter stated that this structure could delay aircraft acquisition and bring in a license raj.

Sources close to Ajit Singh said he "did not even take cognizance" of the letter sent by a director of the PMO and aviation secretary K N Shrivastava took up the issue with the PMO. The ministry prevailed and issued an order — dated October 31 — that Singh will be the "approving authority" and AAC a "recommending authority" for aircraft acquisition requests by schedule airlines, regional airlines, charter companies and private individuals. The aviation secretary will be the approving authority for import requests by flying clubs; for extending initial import permissions and to replace aircraft when seating capacity of new planes is 10% more than the old ones.

This is the second time in six months when the aviation ministry has over-ruled the PMO. In July, it sacked director general of civil aviation Bharat Bhushan just after the PMO granted him an extension.

Aviation ministry officials say the decision to make the AAC empowered taken during the NDA rule was "bad in law". "The ministry clarified to the PMO that the final approval authority for importing aircraft is with the minister. Ajit Singh feels that low cost carriers which started in India were also meant to promote regional connectivity by connecting small towns to metros and have small planes to inter-connect small towns. In past few years, airlines have been allowed to import 100 plus aircraft and these airlines do not have small planes for regional connectivity. His aim to be the final approver was to ensure regional connectivity is not lost sight of while clearing airlines' request to bring in planes," a top official said.

Ajit Singh said: "Someone complained in the PMO that minister being final approving authority will mean delays. There is no question of that happening under me. Also, the decision to have the minister as approving authority was taken by my predecessor (Vayalar Ravi) in March 2011. There was no legal status for the AAC to be an empowered agency. I have spoken to the PM on this issue and it has been laid to rest."


Story and reaction/comments:  http://timesofindia.indiatimes.com

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