India News | New Bill to Boost Aircraft Leasing Industry, Strengthen Banking Ecosystem: Naidu
Get latest articles and stories on India at LatestLY. Civil Aviation Minister K Rammohan Naidu on Tuesday said the Protection of Interests in Aircraft Objects Bill, 2025, will boost the Indian aircraft leasing industry and strengthen the country's banking ecosystem as it will address the inconsistencies in the leasing regulations.
New Delhi, Apr 1 (PTI) Civil Aviation Minister K Rammohan Naidu on Tuesday said the Protection of Interests in Aircraft Objects Bill, 2025, will boost the Indian aircraft leasing industry and strengthen the country's banking ecosystem as it will address the inconsistencies in the leasing regulations.
Soon after the Rajya Sabha passed the bill, the minister also said the push for the aircraft leasing industry was the need of the hour.
The proposed legislation seeks to provide legal backing for the Cape Town Convention that mainly pertains to the leasing of aircraft.
In a post on X, the minister said that for too long, inconsistencies in leasing regulations have made it difficult to lease planes in India.
The bill will "boost the Indian leasing industry, incentivise domestic lessors, and strengthen our banking ecosystem -- ensuring a more accessible and comfortable aviation landscape. This push for the leasing industry was the need of the hour...," he said.
India is one of the world's fastest-growing civil aviation markets, and domestic carriers have placed orders for more than 1,200 planes.
Under the Cape Town Convention, lessors can take back the possession of aircraft leased to airlines.
When Go First was undergoing an insolvency resolution process, there was a moratorium and lessors were not able to take back their aircraft leased to the airline. Later, an ad hoc arrangement was put in place allowing the lessors concerned to take their leased planes from Go First.
India is a signatory of the Cape Town Convention but it is yet to ratify the convention. Once the bill is cleared by Parliament and legislation is enacted, the Convention will get legal backing in India.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)