2. Introduction:
The Civil Aviation industry in India - is achieving new heights. India is now the third
largest domestic civil aviation market in the world.
Indian aviation industry which contributed five percent of GDP, offers four million jobs
and another seven million jobs through tourism and related activities. So more efforts
are needed, on creating infrastructure which will enable further growth.
The recent historic purchase order of 470 aircraft by Air India and 500 aircraft by
IndiGo airlines has positioned India as an important market in the global civil aviation
ecosystem, making it an attractive investment destination worldwide.
5. Responsibility of Ministry of Civil Aviation (MoCA):
1) Formulation of national policies and programs for the development and
regulation of the Civil Aviation sector in the country.
2) Administration of the Aircraft Act, 1934, Aircraft Rules, 1937 and various other
legislations pertaining to the aviation sector in the country.
3) Oversees the planning and implementation of growth and expansion programs in
the civil aviation sector, airport infrastructure and air navigation services.
4) Provides guidance to the organizations in the implementation of policy
guidelines, monitors and evaluates their activities and also provides interface
with Parliament.
6. 5) It also supervises implementation by the organizations of special programmes
of the Government, particularly those intended for weaker sections of society.
6) It releases periodic statistical data in aviation like domestic/International
traffic, On time performance, Passenger Load factor, Airport, Cargo etc.,
7) It exercises administrative control over attached and autonomous organization
and Public sector undertakings.
a. Attached Offices / Organizations
i. Directorate General of Civil Aviation(DGCA)
ii. Bureau of Civil Aviation Security (BCAS)
iii. Commission of Railway Safety (CRS)
iv. Aircraft Accident Investigation Bureau (AAIB)
7. b. Autonomous Body
i. Airports Economic Regulatory Authority (AERA)
ii. Indira Gandhi Rashtriya Uran Akademi (IGRUA)
iii. Rajiv Gandhi National Aviation University (RGNAU)
c. Public Sector Undertakings
i. Airports Authority of India (AAI)
ii. Pawan Hans Limited (PHL) -Disinvestment is underway
iii. AI Asset Holding Limited (AIAHL) and its subsidiaries.
8. National Civil Aviation Policy, 2016
MoCA released the National Civil Aviation Policy 2016.
This is the first time since independence that an integrated Civil Aviation Policy has
been brought out by the Ministry. Highlight of the policy is to make regional air
connectivity a reality.
The policy aims to take flying to the masses by making it affordable and convenient.
Establishing an integrated eco-system which will lead to significant growth of the
civil aviation sector to promote tourism, employment and balanced regional
growth.
It will enhance regional connectivity through fiscal support and infrastructure
development and enhance ease of doing business through deregulation, simplified
procedures and e-governance.
9. The policy is very comprehensive and covers 22 areas of the Civil Aviation sector.
10. Salient features of National Civil Aviation Policy, 2016
1. Regional Connectivity Scheme:
a. This scheme is effective from second quarter of 2016-17
b. Airfare of about Rs2500 per passenger for a one-hour flight.
c. This will be implemented by way of:
Revival of airstrips/airports as No-Frills Airports at an indicative cost of
Rs.50 crore to Rs.100 crore
Demand driven selection of Airports/airstrips for revival in consultation
with State Govts and airlines
Viability Gap Funding(VGF) to airline operators
RCS only in those states which reduce VAT on ATF to 1% or less, provide
other support services and 20% of VGF
11. d. Concessions by Stakeholders:
There will be no airport charges
Reduced Service tax on tickets (on 10% of the taxable value) for 1 year
initially
Reduced Excise duty at 2% on ATF picked at RCS airports
State government will provide police and fire services free of cost. Power,
water and other utilities at concessional rates.
e. Creation of Regional Connectivity fund for VGF through a small levy per
departure on all domestic flights other than Cat II/ Cat IIA routes, RCS routes
and small aircraft below 80 seats at a rate as decided bythe Ministry from
time to time
f. VGF to be shared between MoCA and State Governments in the ratio of
80:20. For the North Eastern States, the ratio is 90:10
12. 2. 5/20 Requirement:
a) Replaced with a scheme which provides a level playing field.
b) All airlines can now commence international operations provided that they
deploy 20 aircraft or 20% of total capacity (in term of average number of
seats on all departures), whichever is higher for domestic operations.
3. Airport PPP/AAI
a) Encourage development of airports by AAI, State Governments, the private
sector or in PPP mode.
b) Future tariffs at all airports will be calculated on a 'hybrid till' basis, unless
specified otherwise in concession agreements. 30% of non-aeronautical
revenue will be used to cross- subsidise aeronautical charges
c) Increase non-aeronautical revenue by better utilisation of commercial
opportunities of city side land
d) AAI to be compensated in case a new greenfield airport is approved in future
within a 150 km radius of an existing unsaturated operational AAI airport.
