Budget 2013: FICCI demands concessional customs duty for items required for development of airports

NEW DELHI: In its pre-budget memorandum, Federation of Indian Chambers of Commerce and Industry ( FICCI) has asked the government to permit import of items required for development of airports at a concessional rate of basic customs duty of 5%.

The items listed by FICCI include airfield crash fire tenders & other fire fighting vehicles, runway marking & pavement testing machine, baggage conveyor (handling) system, airport ground lighting, Passenger Boarding bridges (aerobridges) along with associated visual guidance docking systems, runway sweepers and LCD/ LED flat panels.

The industry body also wants alternative/take-out financing for aviation sector. "An SPV providing dedicated capital can be set up by the government to facilitate lower interest rates and longer maturity of loans," said FICCI.

FICCI has also asked the government to exempt from custom duty the import of X-ray baggage inspection system and other Airport security systems.

Finance Minister P Chidambaram will present the Union Budget 2013-14 on February 28. The industry is looking at the budget to boost economic and investor sentiment.