Officials familiar with the deliberations said policymakers are examining licensing procedures, security clearances, minimum capital requirements and manpower-related regulations
The Centre is reviewing whether the Directorate General of Civil Aviation's (DGCA) approval process for launching scheduled airlines can be streamlined as part of a broader overhaul of India's aviation regulatory framework aimed at lowering entry barriers and encouraging more private players, sources told businessline.The move follows the government's wider review of regulations governing airline entry. Last week, businessline reported that the Centre had identified several hurdles, including the 0/20 rule, that make it difficult for corporates to set up airlines in India.Officials familiar with the deliberations said policymakers are examining licensing procedures, security clearances, minimum capital requirements and manpower-related regulations. The focus is on the current multi-stage approval process under which airlines must sequentially obtain a No Objection Certificate (NOC), security clearance and an Air Operator Certificate (AOC) before commencing commercial operations.Streamlining ApprovalsThe Ministry of Civil Aviation is assessing whether these procedures can be rationalised without diluting regulatory safeguards. According to sources, the sequential approvals often delay commercial launches and impose significant compliance costs before airlines begin earning revenue.The government is also reviewing rules governing ownership changes, management restructuring and corporate approvals. At present, airlines are required to obtain fresh regulatory and security clearances following significant changes in ownership, Board composition or senior management, a process that can slow fundraising and corporate restructuring. Officials are evaluating whether these requirements can be made more efficient while safeguarding national security.Capital NormsSeparately, the ministry is examining the minimum paid-up capital norms prescribed for scheduled airlines based on fleet size and aircraft category. Sources said the existing thresholds may no longer reflect the realities of an industry increasingly dependent on aircraft leasing and new financing models.The review comes as India prepares for the next phase of aviation growth, with passenger traffic rising steadily and the government looking to encourage greater private participation in the sector.Published on July 27, 2026
