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Government to remove prior approval norm for aircraft import


Monday, 10 August,New Delhi: To simplify procedural requirements for carriers, the Civil Aviation Ministry plans to do away with the prior approval norm for importing aircraft.

The ministry has written to the Directorate General of Foreign Trade (DGFT) and the Reserve Bank requesting them to amend their rules.

At present, No-Objection Certificate (NOC) is required from the ministry before any scheduled or regional carrier wants to import an aircraft.

In a written reply to the Lok Sabha, Civil Aviation Minister Ashok Gajapathi Raju today said that “towards simplification of procedures”, the ministry has requested DGFT and RBI to amend their respective rules for removing the prior approval requirement for aircraft import.

Leading aircraft makers – Airbus and Boeing – have projected increase in demand from India for new aircraft in the coming decades.

In June, Airbus had said that growing passenger traffic in India and other emerging markets would help generate aircraft demand worth US $5 trillion in 20 years.

Besides, India is projected to be the world’s third- largest aviation market by 2029, according to International Air Transport Association (IATA).

To another query, Raju said the government has taken various steps to improve business conditions in the domestic aviation sector.

These include the DGFT allowing direct import of Aviation Turbine Fuel (ATF) by airlines on actual user basis, he added.

“The issue of rationalisation of Value Added Tax (VAT) on ATF has been taken up with the state governments,” Raju said.


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