http://autofeed.msn.co.in/pandorav3/output/Travel/de6a76dd-c010-4ad9-ac79-0e 29e1ed68d6_1.aspx
Madhya Pradesh turns airline-friendly Source: IANS. Image Source: Dgl.microsoft.com Desperate to reverse negative tourism growth, Madhya Pradesh Tuesday promised to pare sales tax on aviation turbine fuel (ATF), expecting the move to lead to increased air connectivity and tourist arrivals. "We promise to rationalise tax on ATF if it will make our state an attractive destination for airlines," Chief Minister Babulal Gaur told the Madhya Pradesh Aviation Conclave, organised in the national capital. Though the realisation has been slow to come, Madhya Pradesh has emerged wiser from experiences of other states that have cut tax on ATF, drawing not only more airlines but also the tourists that travel in them. At present, Madhya Pradesh levies a sales tax and surcharge of 28.75 percent on ATF, one of the highest amongst the states. While Andhra Pradesh, Chhattisgarh and Rajasthan have reduced tax on ATF to just four percent, Madhya Pradesh Aviation Secretary S.S. Uppal said: "We are yet to work out what the new rates would be. "We have promised to consider a reduction." "Airlines would naturally like to fly to states that offer fuel at cheaper prices," said a Confederation of Indian Industry (CII) official. Madhya Pradesh has four operational airports and as many as 26 airstrips located next to the 35,000-year-old rock painting site Bhimbetka, temple town Khajuraho and Buddhist pilgrimage centre Sanchi. "We are also looking at encouraging chartered helicopter services to these sites," Gaur said. Already, work has commenced to expand the runway at the Khajuraho airport to 7,550 ft. to allow large aircraft to operate services. "We are not expecting A380s (the new super-liner from Airbus) to call on our airports. But we want more private airlines to touch down in our state," said a Madhya Pradesh government official. In 2003, Madhya Pradesh received only 5.41 million tourists, less than the 5.96 million in 2002. Gaur said his government would come out with a comprehensive policy on the entire gamut of operations in the aviation sector. He also promised to lay good roads, create better infrastructure make the state a tourist friendly destination. The conclave is a forward step to attract tourists, who are expected in plenty following liberal air services agreements New Delhi has signed with Beijing, Doha, London and Washington early this month. In 2004-05, India registered a record 3.36 million incoming tourists, up from 2.72 million in the previous fiscal. The figure is expected to cross four million this year. --------------------
