New Delhi, Apr 7: Refuelling of long distance flights will now be treated on an equal footing with other exports and brought under the export promotion scheme, Commerce and Industry Minister Kamal Nath said today.

''This will hopefully enable India to offer competitive fuel prices and will attract mid-route stops of international flights,'' he said while releasing annual supplement to the foreign trade policy for 04-09.

Currently, most foreign airlines replenish supplies of food, beverage and other items or refuel at Thailand, Malaysia or Singapore. Since these supplies were not treated as exports in India so far and suppliers could not obtain the duty neutralisation benefits available to other export products, the store supplies were not competitive enough.

''We've decided to treat such supplies on an equal footing with other exports, qualifying for benefits under various export promotion schemes,'' said Mr Nath.

The changes in trade policy also include permission to import second-hand aircraft spares on recommendation from the Directorate General for Civil Aviation (DGCA).

Export oriented units have been allowed to set up retail outlets at international airports for sale of goods. The items remaining unsold for two months will be returned to the EoUs, according to the new policy decision.

UNI

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