Chief Minister N. Kiran Kumar Reddy today reviewed development of new airports, ports and APGDC-FRSU LNG (Andhra Pradesh Gas Distribution Company-Floating Storage Re gasification Unit Liquified Natural Gas Project) and other issues connected with it. The Chief Minister also reviewed expansion of Rajahmundry airport.
Minister for Infrastructure & Investment Ghanta Srinivasa Rao, Chief Secretary Minnie Mathew, Principal Secretary, I&I, R.R.Mishra, Principal Secretary, Revenue, B R Meena, Principal Secretary, MA&UD, Sam Bob, Principal Secretary, R&B, S.P.Singh, Higher officials of GAIL, Collector, East Godavari District, Secretary to CM, K S Jawahar Reddy and other officials attended the meeting.
The meeting discussed about the salient features of the Civil Aviation Policy. The objective of the policy is to encourage the development of civil aviation industry across the State to achieve balanced growth in economy across all the regions of the State. It is to promote development of non-hub airports across the State, which will act as centres of economic activity in interior regions, facilitate the development of allied civil aviation activities such as aviation training; aviation clubs; adventure sports; maintenance, repair and overhaul (MRO) etc., Ensure availability of aviation infrastructure including airports, training, MRO and other related services for citizens, attract private sector participation in the development by ensuring economic viability of airports, attract airlines to provide connectivity to airports in the State, create a framework for offering State support and incentives to achieve these objectives, promotion of helicopter service and heli-tourism through provision of heliports.
The State government will liaison with Ministry of Civil Aviation to ensure provision of all the essential services such as navigation aids, ATC etc. Coordination is required with Union Government ministries as clearances are required from Defence, Home Affairs and Environment and Forests, Bureau of Civil Aviation Security (BCAS) and Indian Meteorological Department. The State Government will also provide administrative support from State controlled mechanisms.
Financing gaps, if any, could be bridged through the viability gap funding scheme from Central Government, which provides for a capital grant of up to 20 per cent of the project cost. In addition, State will provide additional financing for up to 20 per cent of project cost. Other incentives from State include municipal tax reimbursements, attractive VAT/ST rates, road connectivity to potential location of civil aviation infrastructure, utility connections to the site, single window clearance etc.
A dedicated cell will be created in the Infrastructure & Investments Department for monitoring the implementation of the policy; for acting as the repository of information and for execution of Government orders.
It is proposed to establish an overseeing board for implementation of the policy under the chairmanship of the Chief Minister. The APSCB will be the apex body for implementation, interpretation and revision of the policy. The board shall have representation from the State Cabinet along with the Chief Secretary and the Secretary, Infrastructure and Investments Department. From Union Government, a nominee of Ministry of Civil Aviation shall also be a member of the board. The APSCAB will be supported by bureaucratic executive committee chaired by the Chief Secretary.
The Chief Minister also reviewed constitution of a Maritime Board which is mandatory with Chief Minister as the ex-officio Chairman. The advantages are that the Maritime Boards are eligible for financial assistance from GoI and has power to borrow loans from World Bank and other financial institutions and agreed to reintroduce State Maritime Board Bill in the ensuing session of Assembly. For the FSRU Project at Kakinada, issues pertaining to signing of MoU, land allotment and time frame for the completion of the Project are discussed and finalised.
The meeting also discussed about the Petronet LNG Terminal Project at Gangavaram. The Petronet LNG Ltd (PLL) and Gangavaram Port Ltd (GPL) signed term sheet on 2-5-2012 and the PLL is promoted by ONGC, IOCL, GAIL and BPCL. The State can expect Rs.2,800crs as VAT through this project. The detailed feasibility study, EC from MOEF and Public Hearing completed along with Market feasibility study and Front End Engineering and Design. Commencement of Commercial operations is expected by the end of 2014 in FSRU and by 2016 in LNG. The Meeting also discussed the Mchilipatnam Port issues. The Chief Minister asked the officials to expedite all these projects with clear milestones and a comprehensive action plan. (NSS)