Govt set to decide on Kingfisher's request for jet fuel imports

With Kingfisher asking the government to show "sense of urgency" on its plea for direct import of jet fuel, the Commerce Ministry is set to take a decision in the next three-four days without consulting states.

"It would not take more than three to four days....The decision is fairly in advanced stage. The consultation has been completed with the stakeholders," Director General of Foreign Trade (DGFT) Anup K Pujari told reporters after a meeting with Kingfisher promoter Vijay Mallya in Delhi.

Pujari said the government is examining three options- to change the policy in entirety removing monopoly of the state enterprises like IOC to import aviation turbine fuel (ATF); to permit only the applicant (Kingfisher) to go in for ATF imports; or to allow such facility to whosoever makes an application.

The troubled Kingfisher has applied for ATF imports, as the move would help its save local taxes, mainly high sales taxes imposed by state governments. Sales tax on jet fuel varies from four per cent in Andhra Pradesh to 40%.

Asked whether the Commerce Ministry has consulted state governments, as they would lose revenue, Pujari said, "We have not...because we know they will not approve it".

Mallya said the application for direct ATF imports was made in 2008 by Deccan Aviation (which was taken over by Kingfisher).

"I have said to him (DGFT) that with very high international crude prices, there is a sense of urgency. Kindly decide...," he said.