The Haryana government today decided to reduce value added tax rate on sale of aviation turbine fuel (ATF) to 1 per cent from 20 per cent at airports notified under the regional connectivity scheme (RCS).
RCS-UDAN was launched by the Union Ministry of Civil Aviation with a view to facilitating regional connectivity by making it affordable.
The scheme would support airline operators with concessions by the central government, state governments and airport operators to reduce the cost of airline operations on regional routes, or other support measures, the Cabinet meeting was informed.
These measures have been planned to provide financial (Viability Gap Funding of VGF) support to meet the gap, if any, between the cost of airline operations and expected revenues on such routes, it was further informed in the Cabinet, according to an official release.
An MoU was signed by the Haryana Government with the Ministry of Civil Aviation, Chairman, Airports Authority of India.
Under the MoU, VAT would be reduced to 1 per cent or less on ATF at RCS airports (as notified by the government) and for RCS flights from other airports located within the state for three years.
The reduction in VAT rate would be subject to the condition that the selling dealer would furnish a certificate duly filled and signed by the authorised person of the RCS flight company, the release said.
In another decision, the Cabinet gave approval for the setting up of a Special Purpose Vehicle (SPV)--Haryana International Horticultural Marketing Corporation Limited (HIHMCL), incorporated under the Companies Act, 2013, to facilitate work of the international terminal market within a fixed time-frame.
Land had been acquired for this project in 2007-08 and process initiated for setting the international terminal market. Now, the BJP government in the state has decided to set up HIHMCL to ensure speedy and world class execution of the international terminal market, the release said.
The Corporation would set up a market of international standards for handling of fruits, vegetables and other perishables, and develop for this purpose infrastructure and other related facilities initially at Gannaur or any other location in the state as may be decided from time to time.