A bill to replace the DGCA by a new aviation regulator with full operational and financial autonomy is likely to be tabled in Parliament in the next part of the Budget Session starting later this month, official sources said on Wednesday.
The bill would establish the new regulator, to be called the Civil Aviation Authority (CAA), which would replace the Directorate General of Civil Aviation and administer and regulate civil aviation safety.
The proposed CAA, like the DGCA, would also deal with matters relating to financial stress on safety of air operations, as witnessed in connection with the closure of the bankrupt Kingfisher Airlines in October last year.
Issues relating to consumer protection and environment regulations in civil aviation sector would also be addressed by the CAA, according to the draft legislation.
The CAA is being established by the government to meet the standards set by the UN’s International Civil Aviation Organisation (ICAO) and in line with aviation regulators in other countries like the US Federal Aviation Administration and UK’s CAA, the sources said.
Noting that DGCA had limited delegation of financial powers and hence was “incapable of making adequate structural changes” to meet the demands of a dynamic civil aviation sector, they said this necessitated its replacement with CAA that would have more administrative and financial power to deal with the fast-changing aviation scenario.
The estimated cost of establishing the new Authority would be around Rs 112 crore, they said.