To make India an aviation refuelling hub, Commerce Minister Kamal Nath on Friday announced that jet fuel supplies to long-distance flights of international carriers would be treated as exports, which would enable oil firms offer fuel at competitive rates.
Export status to aviation turbine fuel supplied to international airlines would help oil firms claim duty drawback or rebate on duty chargeable on imported crude oil used in the manufacture of such fuel. This would essentially translate into lowering of fuel prices.
"In order to tap the business opportunity in supplies of stores (food, beverages and other supplies) and refuelling of long distance flights, it has been decided to treat such supplies on an equal footing with other exports, making them eligible for benefits under various export promotion schemes," the Minister said announcing Foreign Trade Policy in New Delhi.
This would enable India offer competitive fuel prices and attract mid-route stops of international flights, he said.
Currently, most airlines on this route replenish supplies or refuel at Thailand, Malaysia or Singapore. Since these supplies were not treated as exports in India and suppliers could not obtain the duty neutralisation benefits available to other export products, the store supplies from India became largely uncompetitive.
Now such supplies are being brought on equal footing with other exports and supplies of stores on board of the foreign going vessel/aircraft shall be treated as exports for the purpose of availing benefits under various Export Promotion Schemes.
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