Industry body ASSOCHAM urged the civil aviation ministry, the Planning Commission and the RBI to work out a joint and a clear mechanism to give a boost to the aviation sector.
In a communication to the government, the chamber raised concern that the sector faces policy and regulatory issues besides lack of finance, especially the equity on the part of promoters. Besides, the borrowings are expensive and difficult to find as well, the industry body said.
The industry, as a whole does not give a good signal, which is not good for the overall economic development especially when the country has an ambitious plan to see investment of $1 trillion in the overall infrastructure sector, said ASSOCHAM.
The chamber asked the government to look aviation as an important part of the economy and not to see it as an elitist segment.
Assocham said the country needs at least 200 functional and operational airports and so far 85 airports have been made ready for complete operations.
While six major airports in the metros and big cities, including Delhi, Hyderabad and Bangalore have been modernised in the PPP mode and modernisation of the Mumbai airport is expected to be completed by September, it is a long haul before India develops adequate aviation infrastructure.
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