Govt gives DGCA power to approve import of aircraft

The Dollar Business Bureau

The aviation ministry had already requested the DGFT and Reserve Bank of India to make changes in their rules

  In a move to ease the process of importing aircraft, the government on Saturday authorised the Directorate General of Civil Aviation—the airline regulator—to grant in-principal approval for the import or acquisition of aircraft. As per the existing norms, scheduled operators including regional carriers have to seek such approval from the Ministry of Civil Aviation. “The delegation of power is being done in order to simplify procedures as compliance of various civil aviation requirements are regulated by the DGCA,” the Civil Aviation Ministry said in a statement. The ministry had already requested the Director General of Foreign Trade and Reserve Bank of India to amend their existing norms to adopt the changes. “After effecting the requisite changes 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 aircrafts,” the statement said. On Thursday, the central bank had issued a fresh notification, allowing banks to issue advance remittance up to $50 million for the import of aircraft, helicopter and other aviation related purchases. “...banks could allow advance remittance, without bank guarantee or an unconditional, irrevocable standby letter of credit up to $50 million, in the case of import of aircrafts/ helicopters/ other aviation related purchases by scheduled air transport operators permitted by the Director General of Civil Aviation (DGCA), " the RBI said in its notification. While allowing advance remittance without bank guarantee or an unconditional, irrevocable standby letter of credit up to $50 million, banks may ensure that “only the requisite approval of DGCA for import of aircrafts/ helicopters in terms of the extant Foreign Trade Policy has been obtained by the company for operating scheduled or non-scheduled air transport services (including Air Taxi Services)”. “In other words, the approval from MoCA will not be required,” the RBI said.  

November 28, 2015 | 3:15pm IST