The Civil Aviation Ministry expects to come out with the new civil aviation policy next month. The inter-ministerial consultations on the revised draft policy are progressing and once these are completed, the ministry hopes to give the final touches and move the Cabinet for a nod.
The policy was expected to be finalised in the last financial year as certain proposals were to be implemented from April 1, 2016. However, differences over various issues including the 5/20 rule for domestic carriers have delayed finalisation of the policy. The issue of 5/20 international flying norm has witnessed extensive debates with legacy carriers opposing any changes to the rule, while start-up airlines are against continuing with the requirement.
The draft policy, unveiled in October 2015, seeks to bolster the country's aviation sector which has high growth potential. It had suggested tax incentives for airlines, maintenance and repair works of aircraft, increasing FDI limit for foreign airlines, setting up of no-frills airports and providing viability gap funding for carriers to bolster regional air connectivity.