ibnlive » India

Jul 11, 2013 at 01:22pm IST

Cabinet approves proposal to replace DGCA with new Civil Aviation regulator

New Delhi: The Cabinet has on Thursday approved a proposal to replace the Director General of Civil Aviation (DGCA) with a new regulator Civil Aviation Authority (CAA), that would have full operational and financial autonomy.

The Cabinet has also repealed the Delhi Rent Control Act and approved the setting up of a Women's University in Raebareli.

The government sources said the Cabinet has considered to set up the CAA to take over certain responsibilities from the DGCA. The new regulator will have a Chairperson who will be aided by Director General.

Cabinet approves setting of new Civil Aviation regulator

The Cabinet has repealed the Delhi Rent Control Act and approved the setting up of a Women's University in Raebareli.

Sources said the CAA to have seven to nine members appointed by the Central government.

Sources said the CAA will be responsible for air safety, setting standards and for airspace regulation as well.

Sources also said the authority will also grant licences to airlines, pilots and will recruit staff at market rates for regulatory purposes.

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, the sources said this necessitated its replacement with CAA that would have more administrative and financial powers to deal with the fast-changing aviation scenario.

CAA, like DGCA, would also deal with matters relating to financial stress on safety of air operations, as witnessed in connection with 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 CAA, according to the draft legislation.

CAA is being established to meet the standards set by UN's International Civil Aviation Organisation (ICAO) and in line with aviation regulators in other countries like the Federal Aviation Administration of the US and the UK's CAA.

(With Additional Inputs from PTI)