Government Implements 5% Tax on Aircraft and Engine Parts

18 Jul 2024 CW Team

The Indian government has introduced a uniform 5% tax on all aircraft and engine parts, aiming to simplify and streamline the taxation process in the aviation sector. This new tax policy is expected to create a more consistent and predictable tax environment for airlines and aircraft maintenance companies.

The implementation of a uniform tax rate replaces the previous varied tax structure, which often led to complexities and inefficiencies. By standardising the tax at 5%, the government aims to reduce administrative burdens and foster a more business-friendly atmosphere within the aviation industry.

Industry experts believe that this move will enhance operational efficiency and potentially lower costs for airlines, which could translate into more competitive pricing for consumers. The streamlined tax policy is also anticipated to attract more investment into the sector, as it offers greater clarity and stability for businesses operating in the aviation market.

The aviation sector is a critical component of India?s economy, playing a vital role in connectivity, tourism, and trade. The new tax regime reflects the government's commitment to supporting the growth and sustainability of this sector. It aligns with broader efforts to modernise infrastructure, improve regulatory frameworks, and boost economic development.

Overall, the uniform 5% tax on aircraft and engine parts is seen as a positive step towards creating a more efficient and competitive aviation industry in India. This policy change is expected to benefit airlines, maintenance companies, and ultimately, passengers, by fostering a more streamlined and predictable operating environment.

Infrastructure Energy

09 Jan 2026

Rajesh Power Secures 65 MW BESS Project in Gujarat

Rajesh Power Services has recently secured a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project in Gujarat, marking its entry into utility-scale energy storage. The company received a Letter of Intent from Gujarat Urja Vikas Nigam for the project, which will be developed at Virpore under a tariff-based competitive bidding mechanism supported by Viability Gap Funding through the Power System Development Fund.The project is expected to be executed within 18 months from the signing of the Battery Energy Storage Purchase Agreement. With the ability to supply 65 MW of power for..

ONGC Forms JV with MOL for Ethane Shipping Operations

Oil and Natural Gas Corporation (Oil and Natural Gas Corporation) has recently entered the ethane shipping segment through joint venture agreements with M/s Mitsui O.S.K. Lines Ltd (Mitsui O.S.K. Lines), Japan. The agreements involve equity participation in two joint venture entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—registered at GIFT City, Gandhinagar.Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of Rs 100 each in both entities, resulting in a 50 per cent equity holding in each joint venture, with the remaining stake ..

Waaree Energy Storage Raises Rs 10.03 Billio for 20 GWh Plant

Waaree Energy Storage Solutions Private, a subsidiary of Waaree Energies, has recently completed a strategic fund raise of around Rs 10.03 billion from a group of strategic investors, including family offices, high-net-worth individuals and institutional backers. The funding strengthens the company’s position in India’s rapidly expanding energy storage ecosystem.The capital raise forms part of an announced capital expenditure programme of nearly Rs 100 billion for setting up a 20 GWh advanced lithium-ion cell and battery pack manufacturing facility. The plant will manufacture high-performa..