When the open skies policy was announced in 1992, it was seen as one of the best examples of the change India was witnessing. After years of public sector monopoly and inefficiency, the country would have a choice. The skies would be open and free. But six years later, the situation in the sector is far from pleasant. The skies are open but for the select few. And there is no consistent policy to speak of. After the fiasco over the Tata Airlines proposal, yet another example of the policy flux was seen this week. The Civil Aviation Ministry decided to permit wet-leasing of aircraft by domestic airline companies just a month after it had banned the practice.The ministry had issued guidelines on June 11 which prohibited leasing of aircraft from foreign airlines. Now the fresh amendment will permit airline companies to hire aircraft along with the pilots and crew members wet-leasing in jargon which can only be leased from foreign airlines. The move is seen as one which will, primarily, benefit Jet Airwayswhich traditionally wet-leases its aircraft.Under the June 11 guidelines, however, aircraft leasing from aviation companies had been ruled out. This rule had affected Jet Airways as it had leased five aircraft from Malaysian Airlines following the notification of the guidelines and had to send these back. Jet was then allowed to keep one of these as a replacement for one of its aircraft which had overshot the runway last month and had got damaged.
Following this, Jet had put in a fresh proposal asking to be allowed to wet-lease three aircraft from Malaysian Airlines. Now that the new guidelines have been announced, it is expected that the other two will also be cleared soon. In an announcement, the ministry said the norms would remain consistent with existing procedures of the Directorate General of Civil Aviation (DGCA) which specify that wet-leasing will have to granted by the Government against an application by the company. While the guidelines define wet- leasing as a short-term measure, they do notspecify any ceiling. In an ideal situation, guidelines should be self-explanatory with no room for ambiguity or discretion. But the ministry has drafted the rules in such a way that the companies will have to keep going back to them for some approval or the other.
For instance, the airlines will be permitted to tide over sudden and temporary shortages of aircraft due to accidents or maintenance work. But the time-frame for the lease would depend on the requirements of the individual airline. Permission would be granted only if the airline justified its need to lease an aircraft.
Private power
The Lok Sabha passed a Bill seeking to allow private investment in power transmission. The Electricity Laws (Amendment) Bill seeks to define transmission as a "distinct" activity under the Indian Electricity Act, 1910, and the Electricity Supply Act, 1948, and to empower the Central Electricity Regulatory Commission to grant transmission licence for inter-state transmission of energy. Licence could also begranted by state governments or the state electricity regulatory commission for intra-state projects, he said. Power Minister P R Kumaramangalam informed that the CERC had already been constituted and an official notification in this regard would be issued very soon. Allaying apprehension expressed by members, particularly those belonging to Left parties, about privatisation of power transmission by amending electricity laws, Kumaramangalam said the real operations of managing transmission would be under the Government and its agencies.``The aim is to bring investment without losing control,'' he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
