nd str and n rastr t re 9.33
terminals, upgradation in 18 non-metro airports, (iii) Proposed investment in major and non-
for improving air navigation services the Airport major ports by 2020 is expected to be
Authority of India (AAI) installing the new ATS around Rs. 2,96,000 crore.
automation system. In order to address issues (iv) Most of the investment to come from
concerning viability of the civil aviation sector, the private sector including FDI (up
particularly the airline industry, a Working Group to 100 per cent under the automatic
was constituted on 12, December 2011 under the route is permitted for construction and
chairmanship of the Secretary civil aviation. Their maintenance of ports), and private sector
major recommendations were: to fund most of the projects through PPP
(i) state governments should rationalise or on ‘build operate transfer’ (BOT) or
the value added tax (VAT) on aviation ‘build operate own transfer’ (BOOT)
turbine fuel (ATF), basis.
(v) Private-sector participation will not
(ii) foreign airlines be permitted to invest in
only increase investment in the ports
domestic airlines undertakings,
infrastructure, it is expected to improve
(iii) direct import of ATF by airlines for their operations of the ports through the
own consumption be allowed, induction of the latest technology and
(iv) airlines should be asked to prepare their better management practices.
turnaround plans, (vi) Public funds will be mainly deployed for
(v) fare structure should be reviewed common use infrastructure facilities like
by airlines to cover the cost of their deepening of port channels, rail and road
operations. connectivity from ports to hinterland,
(vi) an economic regulatory framework etc.
suggested with regard to excessive/
predatory pricing by 31, May 2012. smart cItIes
The GoI has launched the Smart Cities Mission
marItIme agenda 2010–20 with the collaboration of states and UTs for urban
The objective of the Maritime Agenda 2010–20 development. The purpose of the mission is – to
is not only creating more capacity but setting up drive economic growth and improve the quality of
life of people by enabling local area development
ports on a par with the best international ports in
and harnessing technology, especially technology
terms of performance:
that leads to smart outcomes.
(i) A target of 3,130 MT port capacity has
The Mission targets promoting cities that
been set for the year 2020. More than 50
provide core infrastructure and give a decent
per cent of this capacity is to be created in quality of life to its citizens, a clean and sustainable
the non-major ports as the traffic handled environment and application of ‘smart’ solutions.
by these ports is expected to increase to The focus is on sustainable and inclusive
1,280 MT. development and the idea is to look at compact
(ii) This enlarged scale of operation is areas and create a replicable model which will act
expected to reduce transaction costs like a lighthouse to other aspiring cities. The smart
considerably and make Indian ports city includes the following core infrastructure
globally competitive. development: