Ministry of civil aviation has written to the commerce ministry to take steps to allow direct import of Air Turbine Fuel (ATF) by Indian carriers in pursuance of the decision of the group of ministers' (GoM) on civil aviation.
The GoM on February 7 had decided that the commerce ministry will permit direct import of ATF by or on behalf of Indian carriers directly as the actual user and on actual use basis.
"The Indian carriers would have to make their own tie-ups with the suppliers having infrastructure to import ATF directly for their use," the aviation ministry said in a release. "The sourcing of ATF through direct imports has the potential to lower overall procurement cost of ATF for the airlines as sales tax varying from 4 to 30% in different states will be required to be paid only on unavoidable local purchase. Also this would bring down the cost of working capital to the air lines as suppliers credit on lower interest rates will be feasible."