Relaxed norms for aircraft import
- For import of an aircraft following steps were necessary till now
- For remittance of funds for import of aircraft, the approval of the ministry was mandatory.
- Scheduled Operators (airlines) and Regional Scheduled Operators have to seek approval from the ministry for import of aircraft.
- The Ministry had recently asked Director General of Foreign Trade (DGFT) and the RBI to amend their existing notification and master circular respectively to relax the norms for aircraft import.
- In early October the DGFT had carried out the requisite amendments in its rules governing aircraft imports.
- Further the RBI in November issued a circular allowing banks to advance remittances of up to $50 million for import of aircraft, helicopters and other aviation related purchases by airlines once airline companies receive approval from the DGCA.
- The Ministry of Civil Aviation has now delegated the power to grant initial No Objection Certificate (NOC) or in-principle approval for import or acquisition of aircraft to the Directorate General of Civil Aviation (DGCA).
- After the changes are effected by DGCA the Scheduled Operators/Regional Scheduled Operators need not approach the Ministry of Civil Aviation for initial NOC/In-principle approval for import/acquisition of aircraft
- Several airlines had voiced their concern over the delay in approvals which had affected their aircraft induction, fleet expansion and replacement plans.
