Government modifies policy for setting up greenfield airports

25 Apr 2008

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The central government has approved a new policy for the setting up of greenfield airports in the country, a  major highlight of which is that mandatory approval of the Union cabinet has now been done away with.

Under the new dispensation a steering committee would be set up under the chairmanship of the secretary, civil aviation, to coordinate and monitor clearances required from various agencies for setting up an airport.

According to the new guidelines, a greenfield airport, to be set up by the Airport Authority of India (AAI) or an airport company, that is in compliance of the guidelines and is beyond 150 km of an existing civilian airport would not require prior approval of the central government. The Directorate General of Civil Aviation (DGCA) would now be competent to grant license for operating the airport under existing rules and notifications.

In case of an application by the AAI, or an airport company, to set up an airport within 150 km of an existing airport, the application shall be considered by the steering committee which will then make a suitable recommendation to the ministry of civil aviation. The DGCA shall consider a proposal for grant of a license to the applicant only after approval has been granted by the ministry.

Airports for cargo and/or non-scheduled flights and for heliports need not be submitted for approval of the ministry of civil aviation and these cases may be considered and decided at the level of DGCA, subject to applicable laws.

Certain functions to be performed at the airport, such as air traffic services, security, customs, immigration etc. would be reserved to be performed by central agencies. An airport company seeking a license would be required to obtain clearances from these agencies, which would provide services on a cost recovery basis.

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