In terms of domestic and international passenger traffic, India has the potential to be among the top three countries in the world. It has an ideal geographic location between the eastern and western hemispheres, a large middle class of about 30 million Indians, and a rapidly growing economy. Despite these advantages, India's aviation sector has not yet achieved the status it deserves, and it is currently ranked 10th in the world in terms of passenger numbers. National Civil Aviation Policy (NCAP), 2016 is a step in this right direction. This article will explain to you about National Civil Aviation Policy which will be helpful in preparing Geography for the UPSC Civil service exam.

National Civil Aviation Policy (NCAP)

• The National Civil Aviation Policy of 2016 calls for the creation of an ecosystem that allows for safe, sustainable, and affordable air travel as well as cost-effective cargo transportation.
• The NCAP 2016 was finalised based on feedback from the general public, other stakeholders, and experts.
• The Union Cabinet approved the National Civil Aviation Policy (NCAP 2016) on June 15, 2016.
• Regional connectivity, safety, air transport operations, 5/20 requirement for international operations, bilateral traffic rights, fiscal support, maintenance, repair and overhaul, air-cargo, and aeronautical 'Make in India' are all covered in the NCAP 2016.
• PM Narendra Modi launched the UDAN Scheme on April 27, 2017 as a key component of the National Civil Aviation Policy (NCAP).

Vision

• To create an ecosystem that makes flying affordable for the masses, with 30 million domestic tickets sold by 2022 and 50 million by 2027, and 20 million international tickets sold by 2027.
• Similarly, by 2027, the cargo volumes should reach 10 million tonnes.

Mission

To provide safe, secure, affordable, and environmentally friendly air travel for passengers and cargo with connections to various parts of India and the world.

Objectives

• To create an integrated ecosystem that will lead to significant growth in the civil aviation sector, which will promote tourism, increase employment, and result in a more balanced regional growth.
• To ensure the aviation sector's safety, security, and long-term viability through the application of technology and effective monitoring.
• To improve regional connectivity by providing financial assistance and investing in infrastructure.
• To deregulate, simplify procedures, and e-governance which will make it easier to do business.
• To promote the entire aviation sector chain, including cargo, MRO, general aviation, aerospace manufacturing, and skill development, in a unified manner.

Key Features

• Viability Gap Funding (VGF) will be used as part of the Regional Connectivity Scheme (RCS).
• Under Commercial Air Transport Operations, a new category called "Schedule Commuter Operator" has been added.
• Rationalisation of Category-I routes under the Route Dispersal Guidelines (RDGs) based on NCAP 2016 criteria.
• For domestic operations, the requirement of 5 years and 20 aircraft has been changed to 0 years and 20 aircraft or 20% of total capacity (in terms of average number of seats on all departures put together), whichever is higher.
• Within the framework, India's domestic code share points will be liberalised.

Policy Highlights

Bilateral traffic rights

• According to India's civil aviation policy, the government will enter into a reciprocal 'Open Sky' ASA (Air services agreement) with SAARC countries and countries with territory entirely outside of a 5000-kilometre radius of New Delhi.
• Flights to and from major international airports within the country will be allowed indefinitely over and above the existing bilateral rights, as notified by MoCA from time to time.
• India currently signs bilateral air services agreements (ASAs) with other countries as part of its current policy.
• These agreements lay out where all carriers from a given country land in India, how many seats they can offer each week, and other details.

Regional Connectivity

• The policy's centrepiece is regional connectivity, and the government's goal is to connect the disconnected.
• So, under this new policy, the government has set a fare cap of Rs. 2500/- per hour of flying between Tier 2 and Tier 3 cities, or between Tier 2 and Tier 3 cities and Metro cities.
• This is part of an effort to make these industries more accessible.
• In the next three years, the government plans to develop 50 airports, which will be existing airports that will be revitalised at a cost of 50-100 crores.
• During the budget presentation, the Finance Minister also announced these plans.

Safety

• The emphasis will be on foreseeing and avoiding accidents and incidents. There will be no tolerance for safety violations. Actions to be taken include:
• For an effective aviation safety oversight system, the DGCA will be given administrative and financial autonomy.
• The DGCA will work to establish a single point of contact for all aviation-related transactions, inquiries, and complaints.
• The DGCA will ensure that safety is tracked in real time and that incidents are reported as soon as possible.
• If necessary, the Aircraft Accident and Incident Investigation Bureau (AAIIB) will be bolstered with contract manpower to conduct swift, independent, professional, and effective investigations.
• At the DGCA level, a consultative group of industry experts will meet once a quarter to identify areas for improvement in various aspects of civil aviation.

Airports Developed by State Governments, Private sector or in PPP

• The Ministry of Civil Aviation (MoCA) will continue to encourage state governments, the private sector, and public-private partnerships to develop airports.
• MoCA will also encourage state governments to develop new airports in their jurisdictions by forming a special purpose vehicle (SPV) with the Airport Authority of India or other interested public sector undertakings or industry to create stake and ownership.
• MoCA will make every effort to ensure that future airport projects in India, both greenfield and brownfield, are cost-effective while maintaining high levels of safety, security, and efficiency.

Aviation Security, Immigration and Customs

• In terms of passenger processing speed and grievance handling, the government will develop performance standards for these agencies.
• IT best practices, passenger check-in, baggage handling, mobile phone-based boarding passes, security screening procedures, immigration and customs procedures, and other topics will be discussed.
• The government will promote the use of private security firms at airports for non-core security functions that will be decided in consultation with the MHA.

Air Navigation Services (ANS)

• In India, ANS is being upgraded and modernised in accordance with global trends. India has become the fourth country in the world to use a satellite-based navigation system with the launch of GPS Aided GEO Augmented Navigation (GAGAN).
• In accordance with the ICAO's Global Air Navigation Plan, AAI will provide a fully harmonised air navigation system.
• CATC Allahabad, ANS' training institute, will be transformed into a world-class training centre for ANS professionals for the Indian and global markets.
• From the 1st of January 2019, all aircraft registered in India ought to be GAGAN-enabled.

Helicopters

• Helicopters are essential for remote area connectivity, intra-city movement, tourism, law enforcement, disaster relief, search and rescue, and emergency medical evacuation, among other applications.
• In comparison to other developing countries, India currently has less than 300 civilian helicopters.
• The following methods will be used to promote helicopter use:
• To promote regional connectivity, the government will initially assist in the development of at least four heli-hubs across the country.
• The DGCA will issue specific regulations for Helicopter Emergency Medical Services (HEMS).
• This will state that helicopters used for HEMS operations can't be used for anything else.

Maintenance, Repair and Overhaul (MRO)

• Indian carriers' MRO business is worth around Rs 5000 crore, with 90 percent of that money spent outside the country – in Sri Lanka, Singapore, Malaysia, the United Arab Emirates, and so on.
• The government is keen to develop India as an MRO hub in Asia, attracting business from foreign airlines, given our technology and skill base.
• The Civil Aviation Policy 2016 aims to boost the sector's vitality. The initiatives that will be implemented range from
• Exempting MRO tools and toolkits from customs duty, and allowing foreign aircraft brought to India for MRO work to stay for the duration of the maintenance or up to 6 months, whichever is shorter (provided it takes no commercial flights during the stay period),
• Visas for foreign MRO/OEM experts to be issued quickly, etc.
• All future airport/heliport projects that have the potential for MRO services will include sufficient land for MRO service providers.
• MoCA will persuade state governments to make MRO activities VAT-free.

Ground Handling

• Existing Ground Handling Policy Regulations will be replaced by a new framework aimed at directing ground handling operations.
• At all major airports, airport operators must ensure that there are three Ground Handling Agencies (GHA), including Air India's subsidiary.
• At all airports, all domestic scheduled airline operators, including helicopter operators, will be free to self-handle.
• Self-handling refers to the ground handling services provided by a company's own aircraft operations, using equipment that it owns or leases.
• Employees will not be able to be hired through manpower agencies.

Air Cargo

• Given its importance in terms of 'Make in India,' e-Commerce, and exports, the government has made it a priority to promote both domestic and international air cargo and express delivery services.
• Domestic air cargo has a lot of job opportunities, particularly for semi-skilled workers.
• The Air Cargo Logistics Promotion Board (ACLPB) will recommend specific actions to promote trans-shipment at Indian airports, which will be monitored by the Ministry of Civil Aviation.
• To facilitate transhipment cargo, Free Trade and Warehousing Zones will be established.
• ACLPB will promote international best practices such as Free-Trade Warehousing Zones (FTWZ), Air Freight Stations, Bonded Trucking, and dedicated cargo airports, among others.

Aviation education and skill-building

• The government will create the necessary ecosystem and architecture to ensure that the skill development capacities of aviation education and training institutes are fully utilised
• These are done with the goal of lowering the cost of skill development on a self-sustaining basis without converting these institutes into profit-driven commercial centres.
• MoCA will devise a plan to provide financial assistance for pilot type-rating.

Importance of Civil Aviation Sector

• The expansion of the civil aviation sector will have a large multiplier effect in areas such as investments, tourism, and job creation, particularly for the country's unskilled and semi-skilled workers.
• According to a study conducted by the International Civil Aviation Organisation (ICAO), the output multiplier and employment multiplier are respectively 3.25 and 6.10.
• According to the International Air Transport Association (IATA), India currently has the world's fastest-growing domestic aviation market.
• It's worth noting that, in July 2015, India's domestic air passenger demand increased by 28.1 percent over the previous year.
• When compared to China's (10.9 percent) growth and the United States' (5.9%) growth during the same period, this growth is three times higher.
• For the current year, domestic traffic in India is expected to grow at a rate of around 15%. (2016).
• In the South Asian region, India's aviation industry accounts for roughly 69 percent of total airline traffic.
• It is important to note that, currently, only about 8 crore domestic tickets are sold annually out of 35 crore middle-class people.
• India has the potential to become a Maintenance, Repair, and Overhaul (MRO) hub due to its advantageous geographical location, which is currently held by Dubai.

Conclusion

While the NCAP tries to address many of the systemic issues that plague India's aviation industry, it has a number of flaws that have disappointed stakeholders. The pressure that a VGF (Viability Gap Funding) scheme would put on state financial resources and the possibility of price increases are among the most significant. Furthermore, the policy fails to address some issues that would have aided in the achievement of the policy's overall goals.

The policy also fails to address the losses incurred by Air India. Regardless of these missed opportunities, the government's intention to implement key changes through the NCAP appears to be positive, and can only add to India's phenomenal growth rates.

FAQs

Question: What is the National Civil Aviation Policy (NCAP)?

Question: What are the main goals of the NCAP?

Question: How does the NCAP aim to improve regional connectivity?

Question: What is the significance of the NCAP for the Indian aviation sector?

Question: What is the Regional Connectivity Scheme (RCS) under the NCAP?

MCQs

1. When was the National Civil Aviation Policy (NCAP) introduced?

A) 2010

B) 2014

C) 2016

D) 2020

2. What is the main aim of the Regional Connectivity Scheme (RCS) under the NCAP?

A) To connect all cities by high-speed rail

B) To promote international tourism

C) To connect smaller cities with major airports at affordable prices

D) To increase airport fees in smaller cities

3. What is one of the key goals of the NCAP?

A) To privatize the aviation sector

B) To make air travel affordable and accessible to all

C) To increase international airfares

D) To reduce the number of airports in India

4. How does the NCAP contribute to improving aviation safety?

A) By promoting private airlines

B) By establishing safety regulations and standards

C) By restricting international flights

D) By increasing air travel taxes

5. What is the significance of the NCAP for India’s position in global aviation?

A) It aims to reduce India's global air traffic

B) It aims to make India a global aviation hub

C) It focuses on local airlines only

D) It discourages foreign airlines

GS Mains Questions and Model Answers

Q1: Analyze the impact of the National Civil Aviation Policy (NCAP) on the growth of regional airports in India.

Answer: The National Civil Aviation Policy (NCAP) plays a pivotal role in the growth of regional airports in India by promoting the Regional Connectivity Scheme (RCS). The RCS provides subsidies to airlines operating on regional routes, making air travel affordable for passengers in smaller towns and cities. This initiative encourages airlines to connect underserved airports with major hubs, facilitating better connectivity and economic growth in remote areas. Additionally, the NCAP provides financial incentives for the development of infrastructure at regional airports, helping to improve facilities and services. The policy has also reduced taxes and fees for regional flights, making them more attractive to both airlines and passengers. By addressing the challenges of air connectivity in remote areas, the NCAP has enhanced the viability of regional airports, helping to bridge the gap between large metropolitan areas and small towns. This, in turn, contributes to overall economic growth and regional development.

Q2: Discuss the role of the National Civil Aviation Policy (NCAP) in making air travel affordable in India.

Answer: The National Civil Aviation Policy (NCAP) is instrumental in making air travel more affordable in India. One of the key features of the policy is the introduction of the Regional Connectivity Scheme (RCS), which aims to make flying affordable for people in smaller cities and towns by reducing the cost of air tickets. The scheme provides financial subsidies to airlines operating on regional routes, thereby lowering airfares and making air travel accessible to a larger section of the population. Additionally, the NCAP focuses on reducing taxes and regulatory fees for both airlines and passengers, which helps lower the overall cost of flying. The policy also encourages competition among airlines, leading to better pricing and service options for consumers. By promoting affordable air travel, the NCAP is expected to increase the number of air passengers in India, contributing to the growth of the aviation sector and making it a more integral part of the country’s transportation system.

Q3: Evaluate the role of the NCAP in transforming India into a global aviation hub.

Answer: The National Civil Aviation Policy (NCAP) is a key driver in transforming India into a global aviation hub by focusing on enhancing air connectivity, improving infrastructure, and promoting competition within the aviation sector. The policy encourages the development of regional airports and enhances connectivity between smaller cities and major metropolitan hubs through the Regional Connectivity Scheme (RCS). This will increase the accessibility of air travel across India, making it easier for international travelers to connect to Indian cities. Additionally, the NCAP aims to develop world-class airport infrastructure and improve the quality of services, thereby attracting foreign airlines and encouraging international flights to and from India. The policy also provides incentives to domestic airlines to expand their fleets and international reach, positioning India as an attractive destination for business, tourism, and investment. Through these measures, the NCAP aims to make India a central player in the global aviation market, fostering long-term growth in the sector.

Previous Year Questions on  National Civil Aviation Policy

1. UPSC CSE 2020

Question: How does the National Civil Aviation Policy (NCAP) aim to promote regional connectivity in India?

Answer: The NCAP promotes regional connectivity by introducing the Regional Connectivity Scheme (RCS), which offers subsidies to airlines operating on regional routes. The scheme helps make air travel affordable in smaller towns and cities by reducing ticket prices, thus boosting air connectivity between underserved airports and major hubs.

2. UPSC CSE 2019

Question: Analyze the significance of the National Civil Aviation Policy (NCAP) for India’s aviation sector.

Answer: The NCAP is significant for India’s aviation sector as it focuses on improving affordability, connectivity, infrastructure, and safety. It promotes the growth of regional airports, reduces aviation taxes, and encourages competition among airlines, leading to a more efficient and consumer-friendly aviation market. The policy positions India as a key player in global aviation.