A decision to allow Kingfisher to import fuel directly will be a part of the overall package for the airline industry and not just for the troubled airlines, the government has said.

The struggling airlines has sought permission from the Directorate General of Foreign Trade to import fuel directly to avoid the steep sales tax levied by states. "When I examine the (Kingfisher's ) proposal I will naturally ask myself why I should do it only for it and not the others," Commerce Secretary Rahul Khullar said.

"A policy decision on the issue will be taken that would apply on all airlines," he added. Khullar confirmed that the DGFT received a letter from Kingfisher seeking permission to import aviation turbine fuel, or ATF, on their own instead of getting it through IOC. "The DGFT is looking at it at the moment," he said.

The levy from the states ranges from 4% to 30%. The DGFT has written to Kingfisher seeking more cost-related information, another official said. The Foreign Trade Policy 2009-13 includes ATF in the list of restricted products that cannot be imported by individuals and can be sourced only through canalising agencies, in this case Indian Oil Corporation.

 ET