Govt eyes Made-in-India civil aircraft in 2 years; discusses high jet fuel prices with airlines, OMCs: Naidu

India will have the first indigenous civilian aircraft within two years through a joint venture, Civil Aviation Minister K Rammohan Naidu said on Tuesday, adding that the ministry is in discussions with airlines and oil marketing companies (OMCs) on high jet fuel prices due to the West Asia crisis.

Speaking at the symposium of the Indian Foundation for Quality Management (IQFM) in Delhi, the minister highlighted that airlines have more than 1,600 aircraft on order that are estimated to be worth about $100 billion and more than 100 new airports are expected in the next 10 years.

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There are 165 airports at present as current fleet of planes with domestic airlines stands at around 850.

"Within two years, we will be able to have Made-In-India civilian aircraft" through a joint venture, Naidu said, further emphasising that the ecosystem is growing.

However, the minister did not disclose any details.

"We can create the best policy," Naidu said, mentioning the need to focus on the quality of materials as well as skilling of people for high end manufacturing activities in the aviation space.

He noted that aircraft makers Boeing and Airbus source components and services worth around $4 billion from India and the amount is expected to touch $10 billion by the end of the decade.

Naidu highlighted that the government would also look at the possibility of manufacturing jet engines in the country but that would be a time-consuming process.

Since airlines are facing headwinds due to the rising prices of Aviation Turbine Fuel (ATF), he said, "One of the most important things is how the West Asia crisis is putting a big burden on ATF prices. We are in discussions with airlines and OMCs."

His comments came a day after IndiGo announced a hike in fuel surcharge for domestic and international flights in the wake of rising jet fuel prices.

India's biggest airline had said ATF prices have remained volatile in recent months, especially following the geopolitical situation in the Middle East.

According to the airline, the continuous rise in fuel prices, with the latest month-on-month increase exceeding 14 per cent, has taken ATF costs to levels that are amongst the highest in the last decade.