MoCA moves to ease aircraft shortage with more bank credit for leasing, faster NOCs
The MoCA also held a meeting on streamlining the No Objection Certificate (NOC) system for builders and stakeholders of aviation-related infrastructure.
- Sep 3, 2026,
- Updated Sep 3, 2026 11:49 AM IST
The Ministry of Civil Aviation is looking at ways to increase bank credit for aircraft leasing and speed up the issuance of No Objection Certificates (NOCs) for aviation-related infrastructure as India’s expanding aviation sector faces a shortage of available aircraft.
Aviation Minister Ram Mohan Naidu held the first meeting of the High Level Committee (HLC) last evening to discuss ways to address the aircraft availability bottleneck.
Naidu told HLC members to explore mechanisms for greater allocation of bank credit to the aircraft sector and identify joint ventures for technical and skill development in aircraft leasing.
India’s airport infrastructure is expanding rapidly, with an airport being operationalized every 45 days. However, the availability of aircraft remains a key bottleneck.
More than 85% of the fleet of Indian carriers is leased, the Ministry of Civil Aviation said, highlighting the significance of continued engagement with stakeholders to strengthen the leasing ecosystem.
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Focus on aircraft financing
The HLC discussed issues related to creating an enabling environment for aircraft leasing and financing, including taxation, regulatory frameworks, availability of finance and ease of doing business.
The discussions included the potential for rupee-denominated financing for aircraft, greater clarity on the applicability of GAAR, and the possibility of renegotiating the Double Taxation Avoidance Agreement framework with Ireland.
The ministry said aircraft leasing is an established and commercially viable business, with the risks associated with the sector being progressively addressed through appropriate legal and regulatory measures.
The HLC agreed that the proposed measures should be examined in consultation with the concerned Ministries, Departments and stakeholders, with a focus on developing a predictable policy framework for aircraft leasing and financing in India.
Senior officials from MoCA, including Secretary Samir Kumar Sinha, representatives from the Ministry of Finance, Department of Commerce, DGCA, RBI, IFSCA and representatives from industry associations were present at the meeting.
MoCA looks to streamline NOC process
The MoCA also held a meeting on streamlining the No Objection Certificate (NOC) system for builders and stakeholders of aviation-related infrastructure.
The concerned officials have been asked to come up with a plan for formulation of the new NOC system within 15 days.
The Ministry of Civil Aviation is looking at ways to increase bank credit for aircraft leasing and speed up the issuance of No Objection Certificates (NOCs) for aviation-related infrastructure as India’s expanding aviation sector faces a shortage of available aircraft.
Aviation Minister Ram Mohan Naidu held the first meeting of the High Level Committee (HLC) last evening to discuss ways to address the aircraft availability bottleneck.
Naidu told HLC members to explore mechanisms for greater allocation of bank credit to the aircraft sector and identify joint ventures for technical and skill development in aircraft leasing.
India’s airport infrastructure is expanding rapidly, with an airport being operationalized every 45 days. However, the availability of aircraft remains a key bottleneck.
More than 85% of the fleet of Indian carriers is leased, the Ministry of Civil Aviation said, highlighting the significance of continued engagement with stakeholders to strengthen the leasing ecosystem.
Don't Miss: GDP revisions are not manipulation, they reflect better data, says former CEA Krishnamurthy V Subramanian
Focus on aircraft financing
The HLC discussed issues related to creating an enabling environment for aircraft leasing and financing, including taxation, regulatory frameworks, availability of finance and ease of doing business.
The discussions included the potential for rupee-denominated financing for aircraft, greater clarity on the applicability of GAAR, and the possibility of renegotiating the Double Taxation Avoidance Agreement framework with Ireland.
The ministry said aircraft leasing is an established and commercially viable business, with the risks associated with the sector being progressively addressed through appropriate legal and regulatory measures.
The HLC agreed that the proposed measures should be examined in consultation with the concerned Ministries, Departments and stakeholders, with a focus on developing a predictable policy framework for aircraft leasing and financing in India.
Senior officials from MoCA, including Secretary Samir Kumar Sinha, representatives from the Ministry of Finance, Department of Commerce, DGCA, RBI, IFSCA and representatives from industry associations were present at the meeting.
MoCA looks to streamline NOC process
The MoCA also held a meeting on streamlining the No Objection Certificate (NOC) system for builders and stakeholders of aviation-related infrastructure.
The concerned officials have been asked to come up with a plan for formulation of the new NOC system within 15 days.