NEW DELHI, Oct 22: The Union civil aviation ministry has protested to the finance ministry over the delay in clearing the Kelkar committee report which has suggested a restructuring package of Rs 900 crore for Indian Airlines. Once this is approved by the finance ministry, fresh equity of Rs 125 crore will have to be infused in the airline.Aviation ministry sources said the report has been with the finance ministry for over five months, with no response from their side. The aviation ministry which is in favour of implementing the panel report, is miffed at the delay. Ministry officials said they were likely to take up the issue with the prime minister too, if the report was delayed any further.For the report to be implemented, the approval of the finance ministry is essential since funds have to be released immediately. Besides, the report also suggests an increased government subsidy to the airline towards the aviation turbine fuel expenses over which the Aviation ministry has already held several rounds of discussions.Indian Airlines lifts ATF at two prices - one for domestic operations and at another for international operations. Although the government permitted import of the fuel under a special import licence, it also later imposed a surcharge. For international routes IA pays a price 4 per cent higher than other operators or Air India.The government has now proposed that a commitee headed by Mr. Vijay kelkar also go into the financial restructuring of Air-India. The aviation ministry is keen that these proposals be cleared before the winter session of Parliament so that the new role of the two carriers can be incorporated in the new policy immediately. The report had suggested that by the year 1999-2000, IA would be in a position make a public offer of shares raising nearly Rs 760 crore to fund its fleet expansion and modernisation. The panel has suggested a shareholding pattern with 49 per cent of the stake held by the government, 10.6 per cent by IA employees and 40.4 per cent held by the public.The report has also warned that if the financial revamp is not undertaken at once, it would be reduced to a market share of 11 per cent by the year 2002-03, from the existing 60 per cent share with cash deficits of Rs 800 crore. The aviation ministry has also sought a reduction in the income-tax of 48 per cent payable by private airliners.
