1)Draft Aviation Policy:-
*Note – The Policy is large and it has some details that are not required to be remembered . What is important is that the terms and the various components associated with Aviation industry, once one knows the components it will be helpful to frame an answer keeping them in mind rather than writing answers without substance.Hence , we request you to go through the article in detail but remember only the key components.
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India has the potential to be among the global top three nations in terms of domestic and international passenger traffic. It has an ideal geographic location between theeastern and western hemisphere; a 300million strong middle class and a rapidly growing economy. Despite these advantages, the Indian aviation sector has notwitnessed the level of growth it should have and at present it is ranked 10th in the world
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The Government has proposed to take flying to the masses by making it affordable.For example, if every Indian in middle class income bracket takes just one flight per annum, it would result in a sale of 300 million tickets, a big jump from the 70 milliondomestic tickets sold in 2014-15. This will be possible if the air-fare, especially on the regional routes is brought down to an affordable level.The reduction in costs willrequireconcessions by the stakeholders, primarily theCentral and State Governments and Airports.
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Vision: To create an eco-system to enable 30 crore domestic ticketing by 2022 and 50 crore by 2027. Similarly, international ticketing to increase to 20 crore by 2027.
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Mission: Provide safe, secure, affordable and sustainable air travel with access to variousparts of India and the world
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Objectives:-i)Ensure safe, secure and sustainable aviation industry through use of technology and effective monitoringii)Enhance regional connectivity through fiscal support and infrastructure development.iii)Enhance ease of doing business through deregulation , simplified procedures and e-governanceiv)Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace,manufacturing and skill development
- Safety:-
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DGCA will strive to create a single-window system for all aviation related transactions, queries and complaints. The services rendered by DGCA will be fullyautomated by 1 April 2016 by implementing eGCA project on priority
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DGCA will be allowed to recruit its personnel directly for posts which are sanctioned as per recruitment rules by exempting them from UPSC for this purpose.
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- Regional Connectivity
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MoCA will target an all-inclusive airfare not exceeding Rs 2500 per passenger,indexed to inflation for a one-hour flight on RCS(Regional Connectivity Scheme) routes.
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This will be implemented by way of:i)Revival of un-served or under-served aerodromes and airstrips.ii)Concessions by different stakeholders:iii)Viability Gap Funding (VGF) for scheduled commuter airlinesiv)Cost-effective security solutions by BCAS and StateGovernments
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- 5/20 rule:-
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In October 2004, the Union Cabinet stipulated that for Indian carriers to fly abroad,they must fly on domestic routes for 5 years and have a fleet of 20 aircraft. MoCA is proposing to introduce the concept of Domestic Flying Credits (DFC). The government invites suggestions on three possible policy options:i)5/20 Rule may continue as it is,ORii)5/20 Rule will be abolished with immediate effect,ORiii)Domestic airlines will need to accumulate 300 DFC before commencing flights to SAARC countries and countries with territory located entirely beyond a 5000 kmradius from New Delhi. They will need to accumulate 600 DFC before starting flights to the remaining parts of the world.
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Airlines will be free to trade DFCs with other airlines under intimation to DGCA
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- Bilateral traffic rights:-
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The bilateral rights have their origin in the Chicago Convention 1944. India has Air Service Agreements (ASA) with 109 countries covering aspects relating to thenumber of flights, seats, landing points and code-share. Utilization of bilateral rights at any point of time differs from country to country and is subject to periodicrenegotiation. In this regard, the Policy will be as follows:-
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The government plans to liberalize the regime of bilateral rights leading to greater ease of doing business and wider choice to passengers
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The government will enter into an ‘Open sky’ ASA on a reciprocal basis with SAARC countries and countries with territory locate d entirely beyond a 5000 km radius from New Delhi
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Landing rights at other airports under the existing ASA will continue to be honoured.
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Increase in FDI in airlines from 49% to above 50% will be examined if the Government decides to go in for open skies for countries lying within 5000 km radius
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- Code Share Agreements (CSA) :-
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A Code-Share Agreement between two airlines allows one airline (‘Marketing airline’) to sell seats on a flight run by another airline (‘Administrating airline’), with the airline code and flight number of the marketing airlines. This helps in seamless connectivity for passenger. In this regard, the Policy will be as follows:-
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Indian carriers will be free to enter into code-share agreements with foreign carriers for any destination within India on a reciprocal basis.
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International codeshare between Indian and foreign carriers will be completely liberalized, subject to the ASA between India and the relevant country
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- Maintenance, Repair and Overhaul (MRO):-
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Maintenance, Repair and Overhaul (MRO) The MRO business of Indian carriers is alone around Rs 5000 crore, 90% of which is currently spent outside India – in Sri Lanka, Singapore, Malaysia, UAE etc. Given our technology base, the government is keen to develop India as an MRO hub in Asia,attracting business from foreign airlines. Accordingly, the following steps will be taken:-
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Service Tax on output services of MRO will be zero-rated
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Aircraft maintenance tools and tool-kits will be exempt from Customs duty.
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Foreign aircraft brought to India for MRO work will be allowed to stay for the entire period of maintenance or up to 6 months, whichever is lesser, provided it undertakes no commercial flights during the stay period.
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- Route Dispersal Guidelines (RDG):-
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RDG was introduced in 1994 to provide air connectivity to J&K, NE, island territories,tier-2 and tier-3 cities, by way of internal cross-subsidy by airlines, using their profits on the trunk routes (12 in number). RDG has succeeded in creating connectivity to remote locations. Capacity actually deployed on Cat II and III is in excess of the RDG threshold, highlighting the business potential in these regions.
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Helicopters :-
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Helicopters play a key role in remote area connectivity, intra-city movement, tourism,law enforcement, disaster relief, search and rescue, emergency medical evacuation, etc. India currently has less than 300 civilian helicopters, as compared to Brazil (1300)
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Separate regulations for helicopters will be notified by DGCA by 1 April 2016, after due stakeholder consultation
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Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5000 feet and areas other than prohibited and restricted ones
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The government will promote the use of seaplanes for growth of tourism and regional connectivity, along India’s 7500 km coastline
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- Airports Authority of India (AAI):-
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Out of 125 airports of AAI, about 95 are operational and 71 have scheduled operations as of July 2015
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- Air Navigation Services (ANS):-
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With the launch of GAGAN,India becomes the fourth nation in the world to use satellite-based navigation system.
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New aircraft being registered in India from 1st April 2017 will mandatorily have to be GAGAN enabled.
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- Air cargo:-
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Promotion of Air cargo is a key objective of the government, given its importance from a ‘Make in India’, e-Commerce and exports perspective . Revenue from air cargo helps airlines subsidize the cost of passenger tickets and take flying to the masses. Air cargo has a high employment potential, especially for semi-skilled workers. Currently air cargo volumes in India are extremely low as compared to other leading countries due to high charges and high turnaround time.
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- Sustainable aviation:-
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MoCA will strive to develop a sustainable Indian aviation industry. It will work with DGCA and industry stakeholders to develop an action plan for making all Indianairports carbon neutral by 1 April 2030.
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- Aviation education and skill building:-
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The government will expedite the commencement of courses by the National Aviation University (NAU).
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2)India’s First New Stealth Submarine Begins Sea Trials :-
- The Scorpene-class diesel electric submarine Kalvari has begun extensive sea trials in the waters off Mumbai this week
- Kalavari, the first of Scorpene class submarines being manufactured at Mazagon Dock Shipbuilders Ltd (MDL), was recently set afloat in the Mumbai naval dockyard.
- Scorpene-class submarine:
- The Scorpene class submarines are a class of diesel-electric attack submarine jointly being developed by the French DCN and the Spanish company Navantia and now by DCNS.
- It features diesel propulsion and an additional air-independent propulsion (AIP) system.
- Air-independent propulsion:-
- Air-independent propulsion (AIP) is any technology which allows a non-nuclear submarine to operate without the need to access atmospheric oxygen (by surfacing or using a snorkel).
- It can augment or replace the diesel-electric propulsion system of non-nuclear vessels.
- It is based on the combustion of stored oxygen and ethanol to augment battery-powered propulsion.
3)Project Loon Of Google:-
- Project Loon is a research and development project being developed by Google X with the mission of providing Internet access to rural and remote areas.
- The project uses high-altitude balloons placed in the stratosphere at an altitude of about 32 km to create an aerial wireless network with up to 3G-like speeds
- The balloons are maneuvered by adjusting their altitude to float to a wind layer after identifying the wind layer with the desired speed and direction using wind data from the National Oceanic and Atmospheric Administration (NOAA).
- Users of the service connect to the balloon network using a special Internet antenna attached to their building.
- The signal travels through the balloon network from balloon to balloon, then to a ground-based station connected to an Internet service provider (ISP), then onto the global Internet.
- Significance of Stratosphere :- Google asserts that the stratosphere is advantageous because of its relatively low wind speeds and minimal turbulence. Google also claims that it can model, with reasonable accuracy, the seasonal, longitudinal, and latitudinal variations in wind speeds within the 18–25 km stratospheric layer.
4)Alternate Train Accommodation Scheme (ATAS) called “VIKALP” :-
- A Major Passenger Friendly move to Provide Confirmed Accommodation to Waitlisted Passengers in Alternate Trains
- With a view to provide confirmed accommodation to waitlisted passengers and also to ensure optimal utilisation of available accommodation, a scheme Alternate Train Accommodation Scheme(ATAS) called “VIKALP” has been conceptualised and is to be introduced
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Steve Ovett, the famous British middle-distance athlete, won the 800-metres gold medal at the Moscow Olympics of 1980. Just a few days later, he was about to win a 5,000-metres race at London’s Crystal Palace. Known for his burst of acceleration on the home stretch, he had supreme confidence in his ability to out-sprint rivals. With the final 100 metres remaining,
[wptelegram-join-channel link=”https://t.me/s/upsctree” text=”Join @upsctree on Telegram”]Ovett waved to the crowd and raised a hand in triumph. But he had celebrated a bit too early. At the finishing line, Ireland’s John Treacy edged past Ovett. For those few moments, Ovett had lost his sense of reality and ignored the possibility of a negative event.
This analogy works well for the India story and our policy failures , including during the ongoing covid pandemic. While we have never been as well prepared or had significant successes in terms of growth stability as Ovett did in his illustrious running career, we tend to celebrate too early. Indeed, we have done so many times before.
It is as if we’re convinced that India is destined for greater heights, come what may, and so we never run through the finish line. Do we and our policymakers suffer from a collective optimism bias, which, as the Nobel Prize winner Daniel Kahneman once wrote, “may well be the most significant of the cognitive biases”? The optimism bias arises from mistaken beliefs which form expectations that are better than the reality. It makes us underestimate chances of a negative outcome and ignore warnings repeatedly.
The Indian economy had a dream run for five years from 2003-04 to 2007-08, with an average annual growth rate of around 9%. Many believed that India was on its way to clocking consistent double-digit growth and comparisons with China were rife. It was conveniently overlooked that this output expansion had come mainly came from a few sectors: automobiles, telecom and business services.
Indians were made to believe that we could sprint without high-quality education, healthcare, infrastructure or banking sectors, which form the backbone of any stable economy. The plan was to build them as we went along, but then in the euphoria of short-term success, it got lost.
India’s exports of goods grew from $20 billion in 1990-91 to over $310 billion in 2019-20. Looking at these absolute figures it would seem as if India has arrived on the world stage. However, India’s share of global trade has moved up only marginally. Even now, the country accounts for less than 2% of the world’s goods exports.
More importantly, hidden behind this performance was the role played by one sector that should have never made it to India’s list of exports—refined petroleum. The share of refined petroleum exports in India’s goods exports increased from 1.4% in 1996-97 to over 18% in 2011-12.
An import-intensive sector with low labour intensity, exports of refined petroleum zoomed because of the then policy regime of a retail price ceiling on petroleum products in the domestic market. While we have done well in the export of services, our share is still less than 4% of world exports.
India seemed to emerge from the 2008 global financial crisis relatively unscathed. But, a temporary demand push had played a role in the revival—the incomes of many households, both rural and urban, had shot up. Fiscal stimulus to the rural economy and implementation of the Sixth Pay Commission scales had led to the salaries of around 20% of organized-sector employees jumping up. We celebrated, but once again, neither did we resolve the crisis brewing elsewhere in India’s banking sector, nor did we improve our capacity for healthcare or quality education.
Employment saw little economy-wide growth in our boom years. Manufacturing jobs, if anything, shrank. But we continued to celebrate. Youth flocked to low-productivity service-sector jobs, such as those in hotels and restaurants, security and other services. The dependence on such jobs on one hand and high-skilled services on the other was bound to make Indian society more unequal.
And then, there is agriculture, an elephant in the room. If and when farm-sector reforms get implemented, celebrations would once again be premature. The vast majority of India’s farmers have small plots of land, and though these farms are at least as productive as larger ones, net absolute incomes from small plots can only be meagre.
A further rise in farm productivity and consequent increase in supply, if not matched by a demand rise, especially with access to export markets, would result in downward pressure on market prices for farm produce and a further decline in the net incomes of small farmers.
We should learn from what John Treacy did right. He didn’t give up, and pushed for the finish line like it was his only chance at winning. Treacy had years of long-distance practice. The same goes for our economy. A long grind is required to build up its base before we can win and celebrate. And Ovett did not blame anyone for his loss. We play the blame game. Everyone else, right from China and the US to ‘greedy corporates’, seems to be responsible for our failures.
We have lowered absolute poverty levels and had technology-based successes like Aadhaar and digital access to public services. But there are no short cuts to good quality and adequate healthcare and education services. We must remain optimistic but stay firmly away from the optimism bias.
In the end, it is not about how we start, but how we finish. The disastrous second wave of covid and our inability to manage it is a ghastly reminder of this fact.