(A) With a view to promoting the growth of the Indian aviation sector in a significant manner, the Government has released the National Civil Aviation Policy (NCAP) 2016. The aim of the Government is to provide an ecosystem for the harmonised growth of various aviation subsectors, i.e Airlines, Airports, Cargo, Maintenance Repairs and Overhaul Services (MRO), General Aviation, Aerospace Manufacturing, Skill Development, etc.
In compliance with NCAP-2016, broad steps taken are as under:
i) Introduction of Regional Connectivity Scheme (RCS) – UDAN (Ude Deshka Aam Nagrik) with an aim to facilitate/stimulate Regional air connectivity by making it affordable.
ii) A revival of un-served or under-served routes under RCS – UDAN.
iii) Introduction of a new category ‘Schedule Commuter Operator’ under Commercial Air Transport Operations.
iv) Rationalization of Category-I routes under Route Dispersal Guidelines (RDGs) on the basis of criteria given in NCAP 2016.
v) Liberalization of domestic codeshare points in India within the framework of Air Service Agreements (ASA). With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% Foreign Direct Investment (FDI) under automatic route has now been allowed in Brownfield Airport projects.
For Non-Resident Indians (NRI’s), 100% FDI will continue to be allowed under the automatic route. However, foreign airlines would continue to be allowed to invest in the capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49% of their paid-up capital and subject to the laid down conditions in the existing policy. Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers.
(B) For addressing the infrastructure issues, Government has granted in principle approval for construction of 21 greenfield airports. The Government is also leasing six airports namely Ahmedabad, Jaipur, Guwahati, Lucknow, Mangalore and Thiruvananthapuram on PPP basis to bring in more investment in the airport sector.
The Government has announced the ‘NABH Nirman’ (Nextgen Airports for Bharat) initiative, which aims to increase the number of Airports and their capacity to handle traffic and preparing our airports for a billion trips a year in next 10-12 years. Consultants have been engaged to chalk out detailed plans to achieve the target within the timeframe.
The matter was taken up with M/s Boeing and FAA regarding the preliminary analysis about the safety aspect of Boeing 737 MAX aircraft and for suggesting any additional measures/advise after the two accidents. Further action shall follow based on inputs/safety measures taken by FAA/Boeing.
38 RCS Airports have been revived and operationalized after launching of Regional Connectivity Scheme. 10 more RCS airports are likely to be ready for operations in next 6 months.
As on April 12th 2019, 160 RCS flights are operating from different airports connecting either un-served or underserved airport.
Air India Disinvestment: The strategic disinvestment of Air India has been deferred for some time due to adverse market conditions and no bidders had shown interest in the proposal. However, the Government has prepared a revival plan for Air India which focuses on building a competitive and profitable airline group, which includes a comprehensive financial package, transferring non-core debt and assets to an SPV, a higher level of operational efficiency by strengthening management and implementing best practice business processes and robust organizational and governance reforms.
The Government remains committed to the disinvestment of Air India (AI). In this regard, AISAM has directed to separately decide the contours of the mode of disposal of the subsidiaries viz. Air India Engineering Services Limited (AIESL), Air India Air Transport Services Limited (AIATSL) and Airline Allied Services Limited (AASL). Further, AISAM has, inter-alia, approved the contours for sale of subsidiaries of AI and directed to expedite the sale of AIATSL.
Pawan Hans Disinvestment: The disinvestment process of Pawan Hans is progressing as per schedule. Considering the confidentiality of the process, not much information can be divulged at this stage.
There is no such policy on privatization of airports. However, Cabinet in its meeting held on 08th November 2018 has accorded approval to proposal for leasing out six Airports viz. Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru of Airports Authority of India (AAI) through Public Private Partnership (PPP). AAI has completed the bidding processes and identified the successful bidder. A proposal for seeking the approval of the Cabinet for the award of bids is under process.
Drone Policies and the vision for the next five years:
Air space management through automated operations linked into the overall airspace management framework,
Beyond visual-line-of-sight operations,
Contribution to establishing global standards,
Package delivery, RPAS Pilot Licensing and Night Flying.
