Business · India Bureau
Independent civil aviation regulator proposed with dedicated funding mechanism
A proposal before the Indian government seeks to establish an autonomous Civil Aviation Authority of India with independent recruitment powers and dedicated finances. The plan includes a suggested passenger levy of ₹15 to support operations.
LSN India ·
A significant restructuring of India's aviation regulatory framework has been put forward to the government, calling for the transformation of the Directorate General of Civil Aviation (DGCA) into an independent body with autonomous financial and human resource management capabilities.
Under the proposed Civil Aviation Authority of India (CAAI) model, the new regulator would operate with its own budgetary allocation and hiring authority, freeing it from dependence on broader government finance and civil service recruitment processes. This structural autonomy is intended to enhance the regulatory body's operational efficiency and decision-making capacity.
To fund the proposed independent authority, officials have suggested implementing a passenger levy of ₹15 on air tickets. This dedicated revenue stream would provide the CAAI with a sustainable financial foundation to support its regulatory and oversight functions across India's aviation sector.
The proposal reflects broader concerns within the aviation industry regarding the need for a specialized, well-resourced regulatory body capable of responding swiftly to sector-specific challenges. An independent authority with dedicated funding and hiring powers could potentially streamline compliance processes and strengthen safety oversight mechanisms.
The proposal is currently under government consideration as policymakers evaluate approaches to strengthen India's civil aviation regulatory architecture.