The centre today announced draft aviation policy aimed at popularizing air travel among the people. The draft proposes to improve air connectivity among the smaller cities. Airlines will not be allowed to charge more than 2500 rupees for one hour flight between two small cities. As per the new draft, about 300 airports and air strips in smaller cities could be operationalized. The draft says the government will provide money for it by setting up a special fund. To boost the aviation sector, the draft proposes tax incentives to airlines by giving them custom exception on aviation fuel. The policy aims to bring India to third position from the current 10th position in the global aviation sector.Government has proposed a slew of tax incentives for airlines and maintenance works in the draft civil aviation policy unveiled today. It has proposed hiking FDI in domestic airlines to over 50 per cent in open skies policy, which is 49 per cent at present. Under open skies policy, overseas airlines can operate unlimited number of flights into and out of India.The policy proposes to put service tax at zero to promote Maintenance, Repair and Overhaul, MRO facility in order to develop India as an MRO hub in Asia. It also seeks to revive under-served airstrips and build no-frills airports at a cost of 50 crore rupees under Regional Connectivity Scheme. The Draft Policy proposes two per cent levy on all domestic and overseas tickets for funding the Scheme. Another proposal is to cap fare at 2,500 rupees for one-hour flight under regional connectivity scheme.Briefing media in New Delhi today, Minister of State for Civil Aviation, Mahesh Sharma said the aim is to make flying available to the country's middle-class. The policy proposes separate regulations for helicopters from the first of April, 2016. Centre will support growth of helicopters for remote area connectivity, intra-city movement, tourism, law enforcement, disaster relief and medical evacuation.However, the government has decided to seek more comments from stakeholders before taking a final call on 5/20 norms – whereby local airlines can fly overseas only when they have five years operational experience and at least a fleet of 20 aircraft.Other policy reforms which has been envisaged are greater de regulation, transparency and e governance, aviation education and skill building, and promotion of sustainable aviation practices. The policy is open to comments from the industry and various stakeholders before being finalised.