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: