Headline: Norms relaxed; Aircraft import process get a breather
PTI
New Delhi
Relaxing the norms for aircraft imports, the Civil Aviation Ministry on Saturday said carriers would now be required to get the initial approval only from sectoral regulator DGCA (Directorate General of Civil Aviation).
The move would make the approval process easier for the domestic carriers, most of which are looking to expand their fleet.
Currently, scheduled as well as regional scheduled operators are required to seek the ministry's approval for import and acquisition of aircraft.
The ministry has decided to delegate the power to grant "initial NOC (no objection certificate)/In-principle approval for import or acquisition of aircraft to the Directorate General of Civil Aviation (DGCA)", an official release said on Saturday.
The delegation of power is being done in order to simplify procedures as compliance of various civil aviation requirements (CAR) are regulated by DGCA, it added.
To implement the changes with regard to approval framework for aircraft import, the Director General of Foreign Trade (DGFT) and the Reserve Bank of India (RBI) have also amended their existing notification and master circular, respectively.
While the DGFT made the amendments on October 9, the RBI effected the changes on November 26. (Read: RBI relaxes norms for aircraft, helicopter imports)
"DGCA has now been requested to make necessary amendment in the related CAR/Rules in accordance with it," the release said.
The easing of approval requirements also comes at a time when the ministry is working on a new aviation policy that seeks to provide various incentives for the sector.
Earlier this week, the RBI said banks can allow advance remittances for aircraft imports once the company has approval from DGCA.
Previously, advance remittance was allowed by banks only when the importing entity had requisite approvals from Civil Aviation Ministry, Directorate General of Civil Aviation (DGCA) and other agencies.
"...banks may, while allowing advance remittance without bank guarantee or an unconditional, irrevocable standby letter of credit up to $50 million, ensure that only the requisite approval of DGCA for import of aircrafts/helicopters" have been obtained by the company, the RBI had said.
MORE WINGS
Civil Aviation Ministry said carriers would now be required to get the initial approval only from DGCA
As most domestic airlines are in process of increasing their fleet, the relaxed norms will make imports easier
Delegation of power is being done in order to simplify procedures
To be in sync with the new framework, DGFT and RBI have amended their existing notification and master circular
