Govt plans tax incentives to make India 'safe, affordable' air sports hub

Policy paper proposes production linked incentive scheme to boost domestic manufacturing of air sports equipment.

The civil aviation ministry has proposed tax incentives and dedicated airspace at select locations to promote air sports such as aerobatics, hand gliding, paragliding, and skydiving.

In a draft policy released on Saturday, Joint Secretary Amber Dubey said: “The government plans to promote the country’s air sports sector by way of making it safe, affordable, accessible, enjoyable, and sustainable,”

The draft policy aims to make India a global hub for air sports and promote design and development of air sports equipment in the country. The move is also expected to boost adventure tourism in the country, which has seen a pick-up in recent times.

The ministry has proposed a two-tier regulation mechanism by setting up Air Sports Federation of India (ASFI) as the apex body to be led by the civil aviation secretary.

At present, the Aero Club of India is the apex body of air sports in the country and also a member of the Fédération Aéronautique Internationale, the world body governing air sports.

Currently, most of the air sports equipment such as aircraft, specialised parachutes, helmets, batteries, and radio aids are imported. The government will consider import duty waiver for such equipment for a specified period. The equipment attracts a goods and service tax (GST) of 18-28 per cent and the government will request the GST Council to reduce the rate to 5 per cent or less, the policy said.

The government may also consider a production-linked incentive scheme to boost domestic manufacturing of the air sports equipment.

Since most air sports involve operating at heights above 400 feet, permission from air traffic control shall be mandatory for such activities. A “control zone” for air sports is proposed for air sports centred around a fixed location such as Bir Billing in Himachal Pradesh, Gangtok in Sikkim, Hadapsar in Maharashtra, and Vagmon in Kerala. The air space can be marked with necessary government permissions and this will enable hassle free flying in such control zones, it said.

The air sports industry and travel companies have welcomed the decision as it gives recognition to air sports. “According to the draft policy, the ASFI will have three nominated air sport experts with no voting powers. I feel representation should be increased and the experts should be given voting rights,” said Gurpreet Dhindsa, founder and chief instructor of PG Gurukul school, a paragliding school in Himachal Pradesh.

“While a few states such as Himachal Pradesh and Uttarakhand have air sports policies, these largely deal with commercial aspects. However, these do not focus on paragliding as a sport. Training and examination should be done under the supervision of subject matter experts,” Dhindsa said.

The government’s push for aero sports development comes following a parliamentary committee recommendation that called for a policy to attract domestic and international investment in the field. The committee in its report had underlined the need for bringing in the latest technology, equipment, infrastructure, and international best practices to promote air sports in the country.

Rajeev Kale, president and country head (Holidays), Thomas Cook India, said the timing of the policy couldn’t be better as there was a high interest for outdoors and adventure travel. “The government’s plan to focus on high potential and sustainable opportunities is commendable as it offers unique scope for aero adventure tourism,” said Kale.