Civil aviation ministry empowers DGCA to grant NOC for aircraft imports

The ministry of civil aviation has delegated the power to grant initial NOC / `in-principle approval' for import or acquisition of aircrafts to the Directorate General of Civil Aviation (DGCA), in a move to simply procedures.

As per the existing procedure, scheduled operators and regional scheduled operators 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 (CAR) are regulated by the DGCA, an official release said.

The ministry said it had requested Director General of Foreign Trade and Reserve Bank of India to amend their existing notification and master circular, respectively, in this regard. Accordingly, DGFT and RBI have carried out the requisite amendments.

DGCA has now been requested to make necessary amendment in the related CAR/Rules in accordance with it.

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 aviation ministry is working on a new aviation policy that seeks to provide various incentives for the sector.

Earlier this week, 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, RBI had said.