The Tamil Nadu government on Friday (October 23, 2026) lowered the VAT on aviation turbine fuel from 29% to 16%, fulfilling a long-standing demand of the Ministry of Civil Aviation. | Photo Credit: B. VELANKANNI RAJ The Tamil Nadu government has been awaiting a response from the Centre for two letters — one regarding Chennai’s existing airport and another about the proposed second airport.In light of mounting complaints from air passengers, the State government wrote to the Centre in the first week of August, asking it to “accord top priority” and bring on board a “competent operator” other than the Airports Authority of India (AAI) to manage and operate the Chennai airport.A month later, in the first week of September, the Tamil Nadu government, which narrowed down two sites — Gummidipoondi and Cheyyur — for the proposed second airport for the city, had asked for a pre-feasibility study to be carried out by the AAI in order to determine whether the sites were viable to establish a second airport for Chennai.“Till today, the government hasn’t received a response to both letters.
We have no idea what is causing the delay. We are keen to develop a second airport for the city and simultaneously upgrade the present airport too,” a source said.
One of the long-pending demands of the Ministry of Civil Aviation was to cut down on the value added tax (VAT) on aviation turbine fuel (ATF) at the Chennai airport and on Friday, the State government slashed it from 29% to 16%. Sources said the State government was serious about boosting air connectivity from Chennai and had implemented the VAT reduction.The first letter had highlighted the “persistent underperformance” of the Chennai airport, its slipping passenger traffic, and how it fell short of passenger expectations, and sought privatisation of airport operations.
It was learnt that in September, the letter had been forwarded to the AAI, Chennai, which had drafted a detailed response and sent it to the AAI, New Delhi, by mid-September. While sources said a response to this letter would soon be sent to the State government, it was not clear whether the Ministry of Civil Aviation or the AAI, New Delhi, would send this communication and why it had not been sent so far.With regard to the second letter, there had neither been any visit to the sites nor a response to the State government.
The letter from the State government had stated: “The study may be undertaken expeditiously to facilitate further clearances.”It is to be noted that a meeting between the top brass of the AAI, New Delhi, and a senior official of the Tamil Nadu government took place recently, where a request to either conduct the study or respond to the second letter was put forth, sources added. Published - October 25, 2026 12:01 am IST