Govt allows pvt firms to use PSU-owned jet fuel facilities

After allowing domestic airlines to import aviation turbine fuel directly, the government has decided to permit private firms to use oil PSU-owned jet fuel facilities like refuelling terminal and storages at Chennai and Kolkata airports.

Currently open access to ATF facilities exists at Delhi, Hyderabad and Bangalore airports, sources said on the sidelines of the Petrotech 2012 Conference in New Delhi.

At a meeting convened on September 24 by Pulok Chatterji, Principal Secretary to the Prime Minister, the issue of open access to ATF facilities of PSUs at airports was discussed.

It was earlier planned that open access would be provided at Chennai, Kolkata, Goa and Mumbai airports by March 2013.

However, the target date was shifted to December 2014/March 2015.

At the meeting, attended by Oil Secretary G C Chaturvedi, it was decided that open access would be provided at Chennai and Kolkata airports by March 2013,

sources said.

At most of the airports ATF supply facilities are owned and operated by oil PSUs while the land is owned by the airport authority/developer.

The airport authorities levy land lease and throughput charges on oil PSUs. Under open access system, both public and private firms can sell fuel by paying for the infrastructure and hydrant facilities.

The government had in February conceded to demands of domestic airlines and allowed them to import aviation turbine fuel directly.

But one of the airlines permitted so far have made much headway in importing fuel as refuelling and other infrastructure at most airports is still owned and operated by public sector oil firms.

Importing ATF was expected to give airlines a cost benefit of between 5-8 per cent as they would not have to pay high local sales tax or VAT levied by state governments.

SpiceJet, Air India and Kingfisher Airlines had received the nod for importing ATF from the Directorate General of Foreign Trade.