Reduced VAT on ATF to spur growth of aviation industry
AVIATION & AIRPORTS

Reduced VAT on ATF to spur growth of aviation industry

Reduced VAT on ATF to spur growth of aviation industry
The Civil Aviation Ministry said that keeping aviation turbine fuel (ATF) outside the ambit of the Goods and Services Tax (GST) will not restrict traffic growth in the sector as 31 states and union territories have already reduced VAT (between 1 and 5 percent) on it and the five remaining ones are also likely to do so in the near future, lifting the burden of high costs on airlines. The Union Civil Aviation Ministry has been lobbying with the Finance Ministry to bring ATF into the ambit of GST.  If ATF is included as a part of GST, airlines will enjoy the benefit of input tax credit which is currently not applicable as jet fuel is taxed under VAT. 

To boost aviation talent in India, Airbus ties up with IIM Mumbai
European aerospace firm Airbus has signed a contract with the Indian Institute of Management (IIM) Mumbai to provide aviation education to professionals and empower them with industry-ready skills through Airbus Beyond programmes. Under this contract, IIM Mumbai will offer short-term aviation courses to aspiring and working professionals in aviation logistics, supply chain management, operations excellence, cargo handling, strategic procurement, business analytics and digitisation. Under the agreement, IIM Mumbai will organise courses, onboard students and provide infrastructure and logistical support. Airbus will provide trainers and training material from the Airbus Beyond catalogue for short-term courses in the initial phase and co-curate long-term courses and certify trainers in the later phase.
Contact: Airbus
Website: www.airbus.com

Thiruvananthapuram Airport: Special zone for domestic passengers at T2
The Bureau of Civil Aviation Security (BCAS) has granted in-principle approval to provide a special zone for domestic passengers at the international terminal (T2) of Thiruvananthapuram International Airport for entry and exit as the domestic terminal (T1) is set to be demolished as part of the airport’s renovation. The final approval is expected within a month. The airport authorities had earlier submitted a proposal to BCAS for dedicated areas for domestic passengers within the international terminal. Two out of six departure
gates in the international terminal will be allocated to domestic passengers.

FLY91, India's newest airline, hits the skies
FLY91, the newest addition to India’s aviation industry, has begun commercial services. FLY91 is a regional carrier and seeks to enhance air connectivity from tier 2 and tier 3 towns across India. FLY91’s debut in the world’s third-largest civil aviation market comes at a time when India is aiming to ascend as the foremost aviation market globally by the decade’s end. However, Fly91 aims to get into a segment which the government has been trying to push, especially via its regional connectivity scheme called UDAN. The airline has introduced a special fare of Rs 1,991 (all inclusive) which applies to all FLY91 routes.
Contact: Fly91
Email: info@fly91.in  
Website: www.fly91.in

Manipur CM launches helicopter services between Imphal and Ukhrul
Manipur Chief Minister Biren Singh launched helicopter services between the state capital Imphal and Tangkhul Naga-dominated Ukhrul district for passengers under the Regional Connectivity Scheme (RCS) - Ude Desh Ka Aam Nagrik (UDAN) of the Ministry of Civil Aviation. Launching the copter service he said it would ease the troubles while transporting patients and during other emergencies. He said a remarkable milestone in helicopter connectivity has been accomplished. The service fare for Imphal-Tamenglong will be Rs 3,590; Jiribam-Tamenglong Rs 3,590; Imphal-Jiribam
Rs 3,045 and the Imphal-Ukhrul fare will be at the subsidised rate of Rs 2,500.

Reduced VAT on ATF to spur growth of aviation industryThe Civil Aviation Ministry said that keeping aviation turbine fuel (ATF) outside the ambit of the Goods and Services Tax (GST) will not restrict traffic growth in the sector as 31 states and union territories have already reduced VAT (between 1 and 5 percent) on it and the five remaining ones are also likely to do so in the near future, lifting the burden of high costs on airlines. The Union Civil Aviation Ministry has been lobbying with the Finance Ministry to bring ATF into the ambit of GST.  If ATF is included as a part of GST, airlines will enjoy the benefit of input tax credit which is currently not applicable as jet fuel is taxed under VAT. To boost aviation talent in India, Airbus ties up with IIM MumbaiEuropean aerospace firm Airbus has signed a contract with the Indian Institute of Management (IIM) Mumbai to provide aviation education to professionals and empower them with industry-ready skills through Airbus Beyond programmes. Under this contract, IIM Mumbai will offer short-term aviation courses to aspiring and working professionals in aviation logistics, supply chain management, operations excellence, cargo handling, strategic procurement, business analytics and digitisation. Under the agreement, IIM Mumbai will organise courses, onboard students and provide infrastructure and logistical support. Airbus will provide trainers and training material from the Airbus Beyond catalogue for short-term courses in the initial phase and co-curate long-term courses and certify trainers in the later phase.Contact: AirbusWebsite: www.airbus.comThiruvananthapuram Airport: Special zone for domestic passengers at T2The Bureau of Civil Aviation Security (BCAS) has granted in-principle approval to provide a special zone for domestic passengers at the international terminal (T2) of Thiruvananthapuram International Airport for entry and exit as the domestic terminal (T1) is set to be demolished as part of the airport’s renovation. The final approval is expected within a month. The airport authorities had earlier submitted a proposal to BCAS for dedicated areas for domestic passengers within the international terminal. Two out of six departuregates in the international terminal will be allocated to domestic passengers.FLY91, India's newest airline, hits the skiesFLY91, the newest addition to India’s aviation industry, has begun commercial services. FLY91 is a regional carrier and seeks to enhance air connectivity from tier 2 and tier 3 towns across India. FLY91’s debut in the world’s third-largest civil aviation market comes at a time when India is aiming to ascend as the foremost aviation market globally by the decade’s end. However, Fly91 aims to get into a segment which the government has been trying to push, especially via its regional connectivity scheme called UDAN. The airline has introduced a special fare of Rs 1,991 (all inclusive) which applies to all FLY91 routes.Contact: Fly91Email: info@fly91.in  Website: www.fly91.inManipur CM launches helicopter services between Imphal and UkhrulManipur Chief Minister Biren Singh launched helicopter services between the state capital Imphal and Tangkhul Naga-dominated Ukhrul district for passengers under the Regional Connectivity Scheme (RCS) - Ude Desh Ka Aam Nagrik (UDAN) of the Ministry of Civil Aviation. Launching the copter service he said it would ease the troubles while transporting patients and during other emergencies. He said a remarkable milestone in helicopter connectivity has been accomplished. The service fare for Imphal-Tamenglong will be Rs 3,590; Jiribam-Tamenglong Rs 3,590; Imphal-JiribamRs 3,045 and the Imphal-Ukhrul fare will be at the subsidised rate of Rs 2,500.

Next Story
Infrastructure Transport

Maharashtra Approves Rs 23.49 Billion Metro Line 11 Project

The Maharashtra government has approved the Rs 23.49 billion Metro Line 11 (Green Line) project, which will link Wadala to the Gateway of India through 14 stations, aiming to reduce congestion in central and south Mumbai. According to a resolution from the state’s urban development department (UDD), the Brihanmumbai Municipal Corporation (BMC) will contribute Rs 2.41 billion and the Mumbai Port Authority (MbPA) Rs 804 million, as the line improves connectivity in their areas. The state and central governments will each provide Rs 3.14 billion.In case of cost overruns, local authorities are r..

Next Story
Infrastructure Transport

Mumbai’s CSMT Metro Station Nears Completion on Aqua Line

The construction of the Chhatrapati Shivaji Maharaj Terminus (CSMT) Metro station on the Mumbai Metro-3 Aqua Line is nearing completion. Photos shared by X user @haldilal reveal the station’s striking arched entrance, glasswork and modern façade.Known as the Aqua Line, Metro 3 is Mumbai’s first fully underground corridor. It spans 33.5 km between Cuffe Parade (Colaba) and Aarey, with 27 stations — 26 underground and one at grade.The Three Phases of Metro-3Phase 1 – Aarey to Bandra-Kurla Complex (BKC): The 12.69 km section opened to the public on 7 October 2024.Phase 2A – BKC to Worl..

Next Story
Infrastructure Transport

Three Firms Shortlisted for Rs 332 Million Delhi Metro Contract

Three firms have qualified for the electrification contract D2E-12 of Delhi Metro Phase 4’s Line 10 and Line 5 extension. Line 10 spans 23.622 km, connecting Aerocity and Tughlakabad with 15 stations, while the Line 5 extension covers 12.58 km between Inderlok and Indraprastha with 10 stations.In June 2025, the Delhi Metro Rail Corporation (DMRC) invited bids for this contract. The technical bids were opened on 4 August 2025, with four firms submitting proposals. During the evaluation, one firm’s bid was rejected.The three qualified firms are:M/s A.K. Infra ProjectsM/s Kalpataru Projects I..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?