September 8, 2018 TnH Global 0

Spicejet CMD calls for cut in taxes on jet fuel to boost growth

The aviation sector will witness a great growth if the government reduces taxes on the jet fuel, Spicejet Chairman and Managing Director Ajay Singh said Friday. Speaking at the Global Mobility Summit ‘MOVE’, Singh pointed out that India was the fastest growing aviation market in the world.

“The government is trying to increase capacity in existing airports … But if the government reduces taxes on aviation turbine fuel (ATF), then the aviation sector will witness a great growth,” he said.

ATF constitutes approximately 35-40 per cent of operational cost of an airline in India. Participating in the thematic session on Comprehensive Electrification & Alternative Fuels, Renault India Private Limited CEO Sumit Sawhney said that the urban mobilisation in India will grow at 9 per cent.

Also participating in the debate, Niti Aayog member V K Saraswat said, “We have to be careful when we adopt lithium-ion battery technology in electric vehicles in Indian condition as temperature in some parts of India rises to 42°C plus.”

Niti Aayog vice chairman Rajiv Kumar asked the panel whether electric vehicles technology and biofuels can be pursued simultaneously. Toyota Motors Corporation general manager Yoshihiro Onumura said India will have to come up with a long term reliable solution for promoting electric vehicles and reduce pollution.