Cabinet okays transfer of $3.7m defunt centre fund to CAAN
KATHMANDU, FEB 21 -
The Cabinet has agreed that a sum of US$ 3.7 million in the aircraft operation fund of the defunct Air Transport Support Centre (ATSC) should go to the Civil Aviation Authority of Nepal (CAAN).
A Cabinet meeting on Jan 25 had approved CAAN’s proposal to buy new aircraft for calibration purposes and to conduct inspections. The ATSC was formed under the erstwhile Department of Civil Aviation after the United Nations Development Project gifted it a Twin Otter aircraft and spares parts in 1992 to facilitate air transport services in Nepal.
The Twin Otter crashed on Aug 21, 1998 in Myagdi district, and the department received around US$ 3.6 million as insurance compensation. The money remained frozen in various bank accounts after the government dissolved the ATSC on Dec 29, 1998, and subsequently the department on Dec 30, 1998 with the establishment of CAAN.
Three years ago, CAAN initiated a process to get back the funds to buy aircraft to perform regulatory and technical tasks. “At present, we have been spending more than Rs 20 million annually to perform aircraft and airport inspections, search and rescue operations and other technical tasks,” said Tri Ratna Manandhar, director general of CAAN.
“After we receive the Cabinet’s decision officially, we will take over the money and proceed with our aircraft purchase plan.” According to him, a committee formed for the procurement of aircraft has submitted its report to CAAN. “We will move ahead as per the recommendation of the report,” he added.
Domestic passenger movement has increased from 1 million in 2001 to 1.58 million in 2011 and is projected to grow 22.54 percent to 1.94 million by 2015, according to a CAAN forecast. Similarly, domestic flight movement at TIA has increased from 63,159 in 2001 to 99,290 in 2010. Government officials said that if an aircraft is procured, it will help CAAN to regularly conduct inspections. However, it should not be misused to fly politicians and their aides, they added.
Source: The Kathmandu Post
