Cabinet to discuss new civil aviation authority

The Union cabinet scheduled to meet on Thursday will consider a proposal to set up a new civil aviation regulatory authority (CAA). Different ministries, however, have already raised questions over its various provisions. Saubhadra Chatterji reports.

The Union cabinet scheduled to meet on Thursday will consider a proposal to set up a new civil aviation regulatory authority (CAA). Different ministries, however, have already raised questions over its various provisions.

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Even as civil aviation minister Ajit Singh plans to replace the Director General of Civil Aviation (DGCA) with this new CAA, giving it more teeth in terms of autonomy, finance ministry has suggested trimming down of the proposed nine-member body to a six-member one. It has also refused to give wealth tax, income tax and service tax exemptions to the new authority.

Another plan to let the CAA raise its own resources through taxes and fees hasn’t found support from the department of space. It feels that the funding model would take away the focus of the organisation. The CAA would be allowed to levy a safety fee of Rs 5-10 on all embarking passengers to mop up Rs 50 crore annually.

Scholarship for ST students

The union cabinet will also discuss a proposal to raise the ceiling of income eligibility of the tribal affairs ministry’s Top Class Education Scholarship scheme to enable more scheduled tribe (ST) students to avail government help. The ceiling of annual family income for aspirants may be raised from Rs 2 lakh to Rs 4.5 lakh.

BPL sops

The cabinet committee on economic affairs (CCEA) is set to consider release of an additional 50 lakh ton of foodgrain for BPL families at BPL rates.