Ministry panel approves direct import of ATF

A ministerial panel yesterday announced that it would allow Indian airlines to cut costs by directly importing jet fuel, the second significant concession that loss-making and debt-ridden airlines have wrung from the government in recent months. The aviation ministry had previously decided to allow foreign carriers to take an equity stake of up to 49 per cent in Indian airlines. The decisions were announced by Ajit Singh, Union Minister for Aviation after the meeting that was chaired by Pranab Mukherjee, Union Minister for Finance.

The panel also approved Air India Ltd’s debt restructuring plan, a critical and early step in efforts to revive the ailing state-owned airline. Both decisions are yet to be approved by the cabinet, but that’s likely to be a formality. The decision on aviation turbine fuel (ATF) will result in Mukesh Ambani-owned Reliance Industries Ltd (RIL) becoming the unintended beneficiary even as analysts averred that fuel import was not a practical idea and some states opposed it, according to a report by Mint.