Regulations, Policies & Implementations- DGCA’s Three Pillars Of Soaring Aviation

By Kamal Shah & Chaitali Bag

It’s truly impressive how the DGCA is always ahead of the curve, masterfully adapting to the fast-paced aviation world! Whether it’s integrating futuristic drones, supporting booming airport infrastructure, or pioneering the shift to sustainable fuels, DGCA faces each challenge with energy and innovation. Talking exclusively with Indian Aerospace & Defence, DGCA Director General Faiz Ahmed Kidwai elucidates that DGCA’s willingness to learn, connect globally, and engage all stakeholders reflects an unwavering commitment to safety and progress. From certifying hundreds of drone types to setting bold SAF blending targets, the DGCA’s dynamic approach is propelling Indian aviation into an exciting, sustainable, and technologically advanced future!

Q1. It is fascinating how the DGCA has consistently played a pivotal role in ensuring safe and efficient air transportation through its ever-evolving regulations. With the rapid pace of change in the air transport sector, just how challenging has it been for the DGCA to stay ahead and adapt its norms to keep up with emerging trends and technologies?

1. DGCA faces significant challenges in keeping regulations current amid rapid advancements in aviation, including evolving airport infrastructure. Key challenges involve safely integrating new technologies into existing systems, aligning with global standards and balancing safety.

Aerodrome standards

To address these, DGCA actively monitors global trends, conducts extensive stakeholder consultations and regularly updates Civil Aviation Requirements (CARs) to enable agile rulemaking. It also focuses on developing internal expertise and collaborating with international bodies like ICAO to ensure alignment with best practices. Despite the complexities, this structured and adaptive approach ensures that safety remains paramount while supporting technological and infrastructural advancements across the aviation sector.

Drone Directorate

The rapid advancement of aviation technologies, including Advanced Air Mobility/ Urban Air Mobility (UAM), eVTOL aircraft and unmanned aircraft systems or drones, requires continuous adaptation of regulatory frameworks. DGCA faces a challenging and evolving learning curve in staying ahead of the evolving air transport sector while ensuring safety and efficiency.

On Drones India has robust & balanced regulations for facilitating the Drone Ecosystem in the country. As of date, we have more than 100 type-certified drones in the country, and there are around 170 remote pilot training organisations generated around 27000 remote pilot certificates. There are around 32000 registered drones in the country for various use cases.

Some of the key challenges include:

1. Integration of Emerging Technologies: Balancing innovation with safety by incorporating new aviation technologies without compromising existing airspace operations.
2. Regulatory Harmonization: Aligning domestic regulations with international standards set by ICAO and other aviation bodies to ensure seamless global operations.
3. Infrastructure Adaptation: Developing frameworks for vertiport integration within airports and ensuring that air traffic management systems can handle increased operational complexity.
4. Risk Assessment & Data Utilization: Encouraging industry stakeholders to share trial data & conduct studies to proactively identify risks & refine regulatory measures.
5. Public & Stakeholder Engagement: Managing the expectations of aviation operators, manufacturers & the public regarding evolving regulations while maintaining transparency.

In recent years, there have been drastic endeavours in the area of aviation environment. Starting from ICAO adoption of market-based measures, Carbon Offsetting Reduction Scheme for International Aviation (CORSIA), to the adoption of the aspirational goal of achieving net-zero carbon emissions by 2050. With both the goals giving acceleration to the production of SAF, in ICAO CAAF/3 held in November 2023, ICAO recently released the Global Framework for SAF/LCAF/Aviation Cleaner Energies to reduce CO2 emissions in international aviation by 5% by 2030 through the use of SAF, LCAF and other aviation cleaner energies. India has enormous potential for the production of SAF, and our commitment can be seen through various initiatives:

•     To boost the market and give a positive signal, India has published indicative targets of blending percentage of SAF in ATF, initially for international flights

   1% by 2027.

   2% by 2028; and

   5 % by 2030

•     Number of flights has been operated with SAF blended fuel.

•     Related to SAF certification, under our guidance, NABCB (National Accreditation Board) has signed the MoU with ISCC (ICAO-approved sustainability certification scheme) to provide accreditation to certification bodies in India for certification of SAF as per ISCC CORSIA scheme requirements.

•     India has joined ICAO’s Assistance, Capacity-building and Training for Sustainable Aviation Fuels (ACT-SAF) programme, wherein a feasibility study will be delivered by ICAO, leading us to a better understanding of the challenges and opportunities, and sound recommendations for the ramp-up SAF industry of the country.

•     A working group has been formed under the Ministry of Civil Aviation to promote the development of SAF in India.

These are just a few initiatives that the Government has taken to enable a positive ecosystem for SAF in the country.

We should also understand that the main purpose of developing clean energy is to promote the green transformation of the civil aviation industry and achieve high-quality development. Developing countries are confronted with many more challenges in clean energy development in the areas of technology, finance, capacity building, knowledge and training etc., which have to be suitably addressed at both the structural and functional levels.

Despite these challenges, the DGCA continues to evolve its norms proactively, leveraging lessons from global aviation trends & emerging safety insights to maintain high standards in air transport operations.

Q2. In light of Prime Minister Modi’s vision for achieving last mile connectivity through the rapid development of Tier 2 and Tier 3 airports, along with increased airline connectivity across the nation, could you elaborate on the critical role that the Directorate General of Civil Aviation (DGCA) has played in facilitating and regulating this transformative initiative?

1. DGCA plays a critical role in regional connectivity by licensing Tier 2 & Tier 3 airports, ensuring they meet essential safety & operational standards. This includes evaluating infrastructure such as runways, taxiways, air traffic control systems, navigation aids & rescue & firefighting services. The licensing process involves detailed inspection & compliance checks to guarantee that these airports can support commercial operations safely, even with limited infrastructure. By maintaining safety oversight while adapting requirements to the unique needs of smaller airports, DGCA enables the safe expansion of regional air connectivity and supports the broader goals of initiatives like UDAN.

Q3. With the DGCA revamping its regulations to streamline seaplane operations, focusing on sustainable development, better pilot training, closer stakeholder engagement, and aligning with the MoCA’s forward-thinking initiatives, how exactly have these new procedures been simplified to support more efficient seaplane operations? And how has the broader industry responded to these impactful changes so far?

1. DGCA has simplified the requirements & process for water aerodromes that address the unique needs of seaplane operations, such as water surface markings, docking facilities & rescue boat access. This approach simplifies regulatory compliance while maintaining safety standards, making it easier for operators to develop and manage water aerodromes. However, while regulatory simplification is a critical enabler, the long-term success and growth of seaplane operations will also depend heavily on commercial viability, including infrastructure development, demand generation and strong state-level support.

Q4. What progress has been made by the Directorate General of Civil Aviation (DGCA) in establishing regulatory frameworks for electric Vertical Take Off and Landing (eVTOL) aircraft and air taxis in India, particularly following the formation of internal working groups last year to study operational aspects and develop pertinent guidelines?

1. DGCA has made significant strides in developing a regulatory framework for electric Vertical Take-Off & Landing (eVTOL) capable aircraft & air taxis in India. Following the information of six internal working groups covering aspects such as airworthiness, air navigation and operational procedures. The DGCA has been actively working on guidelines to facilitate the safe and efficient integration of eVTOL-capable aircraft into the national airspace.

Two working groups have already developed Guidance Material for Design, operation and Authorization of Vertiports issued on 5^th September 2024 and Guidance Material on Type Certification of vertical take-off and landing capable aircraft (VCA) issued on 11^th September 2024. These documents are available on the DGCA website for the stakeholders’ information. Flight Crew training and licensing working group is in an advanced stage of stakeholder consultations. These working groups are also contributing to the identification of plausible locations for sandbox experiments.

The DGCA is collaborating with international aviation agencies, including ICAO, EASA, FAA and CAA Singapore and other major stakeholders to optimize and align domestic regulations with international standards set by ICAO and other aviation bodies to ensure seamless global operations.

DGCA has reached out to the State Governments for Infrastructure Development. Based on the regulatory framework, vertiports, air routes and other essential infrastructure will be established to support safe and efficient eVTOL operations.

These efforts mark a significant step toward integrating eVTOLs into India’s aviation ecosystem, paving the way for urban air mobility solutions that could revolutionize transportation in congested cities. The DGCA’s proactive approach ensures that India remains aligned with global advancements in next-generation air mobility.

Q5. While Prime Minister Modi’s vision of “Ude Desh ka Aam Nagrik” aims to make air travel accessible to the average citizen, there have been persistent concerns about rising airfares and significant price surges during peak travel seasons in recent years. Could you elaborate on the measures that the Directorate General of Civil Aviation (DGCA) is implementing to regulate airfare pricing and ensure that air travel remains affordable for the general public?

1. The removal of the Air Corporations Act 1953 marked a departure from the previously capped fare structure, ushering in an Era of free market dynamics. Under a policy of deregulation, airlines have the freedom to introduce capacity using any type of aircraft, choose the markets and networks they intend to serve, and set their fares, while adhering to the Route Dispersal Guidelines (RDG) outlined by the Ministry of Civil Aviation. The airlines are permitted to establish airfares based on their assessments of operational viability.

The Government does not regulate the commercial fare set by airlines- Indian or foreign. The fares on any route are dependent, inter alia, on seasonality, holidays and festivals, cost of aviation turbine fuel, competition and other similar factors. Airline pricing runs in multiple levels (buckets or RBDs), which are in line with the practice being followed globally and due to dynamic fare pricing, the tickets bought in advance are much cheaper than those purchased near the travel date. Under the provisions of Rule 135(1) of the Aircraft Rules, 1937, the airlines are free to fix tariffs, having regard to all relevant factors, including cost of operation, characteristics of services, generally prevailing tariff etc. DGCA’s tariff monitoring unit (TNU) ensures that the fares being charged by the airlines are as per the tariffs established by the airlines.

The government maintains a vigilant oversight role, intervening in exceptional circumstances, such as during the pandemic, to ensure air travel is affordable to passengers. In such instances, the government may impose temporary fare caps or redistribute capacity across various sectors to mitigate excessive pricing and ensure the comfort and welfare of passengers.

Monitoring by DGCA:

The establishment of the Tariff Monitoring Unit (TMU) has led to the systematic monitoring of airfares on randomly selected routes. The principal function of the TMU is to ensure that airlines adhere to the established tariffs when setting their fares. By doing so, the TMU plays a critical role in maintaining airfare levels within the boundaries of the airlines’ prescribed tariffs. This proactive approach serves to mitigate abrupt price surges that may arise from local events or force majeure conditions.

Steps taken to mitigate the increase in airfares:

1. Enhancement of Capacity: With the enhancement of capacity by the induction of more aircraft fleet, modernization of airports and development of new airports, domestic passenger traffic has increased to 153,674,310 in 2023-24 as compared to 136,028,656 in the year 2022-23. Further growth in these areas is going to make a positive impact on the aviation sector. Passengers will have more options to fly, the fares are going to reduce, help the Indian economy to boom, among others.
   1. Fleet Strength: Number of aircraft for scheduled operation increased from 691 in 2019 to 836 as of 28.02.2025.
      1. Future Orders by Air Carriers: The airlines have placed huge orders (1150 orders) of new aircrafts in the last 02 years.
      1. Indigo: 500 Airbus A320 aircraft in June 2023 and 30 Airbus A350-900 aircraft in 2024.
      1. Air India: 470 Airbus & Boeing aircraft in June 2023
      1. Akasa Air: 150 Boeing 737 Max aircraft in January 2024
2. Competitive Dynamics:  India’s competitive aviation market has ensured affordability despite rising input costs:
   1. Low-cost carriers dominate, focusing on price-sensitive travellers.
      1. Government (e.g. UDAN scheme) supports regional air connectivity.
3. Air Transport Circular 2 of 2024: Rule 135 of the Aircraft Rules, 1937, mentions that every air transport undertaking to publish the tariff established by it on its website. Earlier, as per ATC 02 of 2010, airlines were allowed to bring notice of any notable change in the established tariff to DGCA within 24 hrs of effecting such change. As a result, airlines were frequently changing the air tariff at their end with just bringing such a change to DGCA. This has made Tariff Monitoring next to impossible. Accordingly, ATC 02 of 2024 was issued to maintain transparency in tariff publication. Now, all the scheduled domestic airlines have been directed to ensure the following:
   1. Publish the current Tariff Sheet in a conspicuous manner on the Airline Website to make the tariffs easily accessible and visible.
      1. Furnish a copy of the tariff established under sub-rule(1) of Rule 135 route-wise across its network in various fare categories, in the manner it is offered in the market, to DGCA on the first day of the calendar month.
      1. Any changes in the tariff sheet, if necessitated by the introduction of any sector or due to justified circumstances, the amended tariff sheet shall be published under intimation to the DGCA by giving adequate reasons and it shall come into effect in the subsequent month.
4. Consultation with OTAs & Airlines: Continuousengagement with airlines and Online Ticketing Agents (OTAs) are being held at MoCA. Airlines are regularly emphasizing the importance of airlines to ensure fair and reasonable airfares so that the sector serves the general public and witnesses continuous growth. OTAs are advised to take all necessary steps to ensure speedy refunds to the passengers and to effectively handle the issue of fare hike while booking, to increase passenger satisfaction.
5. Integration of Airfare in AirSewa: To address concerns related to exorbitant airfare, the AirSewa portal is under the process of ‘updation to introduce a dedicated airfare grievance type – “excessive airfares”. The development of the high airfare module as a sub-section of the AirSewa grievance portal has been completed. Therefore, the AirSewa portal is expected to provide a platform to lodge grievances related to excessive airfare. This will facilitate passengers I case of excessive airfare and improve passenger convenience.
6. VAT & ATF Prices: ATF prices have experienced high volatility. Increase in aviation fuel is influenced by global crude oil prices, currency exchange rates, ocean freight, import costs, marketing costs, margin & domestic taxation policies. The final selling price of ATF includes the excise duty and VAT/ Sales tax levied by the Centre & State Governments, respectively. These prices were hovering around Rs. 1,00,000 per kl in January 2024, but by November 2024, the prices had come down to around Rs. 90,000 per kl. As per IOC data as of November 1, 2024.

Although VAT is a state subject and each state levies VAT on ATF based on the state’s policy. However, taking cognizance of the high-value-added tax (VAT) on ATF levied by States/ UTs, the Ministry of Civil Aviation has taken up the matter with them to reduce VAT on ATF. As a result, VAT on ATF has been reduced in 19 States/ UTs. The issue has again been taken up with the States/UTs, which have not reduced VAT on ATF, viz. Assam, Bihar, Tamil Nadu, West Bengal & Delhi. Most recently, HMCA has written to CMs of Karnataka, Goa, Maharashtra, West Bengal, Assam, Bihar, Tamil Nadu, Lakshadweep, Haryana & Telangana in February 2025 requesting them to rationalize VAT on ATF. A letter to the newly elected CM of Delhi is being sent. HMCA had earlier written on 23.09.2024 to CMs of Delhi, Tamil Nadu, Assam, Bihar, Goa, Karnataka, Maharashtra & West Bengal. Previous to that, the then HMCA had taken up the matter on various occasions.

• Efforts taken by Government to bring ATF under GST: As per Article 279 A (5) of the Constitution of India, the Goods & Services Tax (GST) Council shall recommend the date on which the GST be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel (ATF). As per section 9 (2) of the Central GST Act, 2017, inclusion of these products under the ambit of GST will require the recommendation of the GST Council. Although petroleum products such as Bunker Fuel, Aviation Gasoline, Liquid Petroleum Gas, Kerosene and Naptha have been brought under the ambit of GST, the GST Council has not made any such recommendation in the case of ATF. MoCA vide letter dated 13.01. 2024 wrote to the MoF for bringing the ATF under the ambit of GST, with full input tax credit (ITC) on goods and services to reduce the tax burden on the aviation sector. It is proposed that GST on ATF may be applied at the rate of 18% and Output tax rates on Economy and Business Class may be raised to 12% and 18% respectively.

Recent Development: The issue of bringing ATF under the ambit of GST has been taken up with the MoF at various levels. MoF vide O.M. dated 04.02.2025 has informed that an agenda for inclusion of ATF under GST was placed before the GST Council in its 55^th meeting held on 21.12.2024. However, the Council did not recommend the same.

• Flexible airspace: In the past, about 40% of the airspace was unavailable for civilian use. This resulted in aircraft adopting circuitous routes to reach their destination, leading to inefficient use of fuel and time, along with avoidable extra expenditure. IAF controls 30% of the national airspace, out of which 30% has been released as upper airspace under Flexible Use of Airspace. As part of ‘Atmanirbhar Bharat’, IAF has agreed to release these portions of airspace for civilian use. Till date, 132 Conditional Routes (CDRs) have been promulgated. This will lead to significant savings in flight time, fuel usage and reduction in carbon emissions. Total savings so far from August 202- Rs. 895.1 crore and total CO2 reduction is 1.95 lakh tons.
• Other steps taken by the Government to help the domestic aviation sector: The Government has constantly been responding to industries emerging situation and undertaking specific measures to facilitate and enable the growth of the sector. The Government aims to provide a conducive ecosystem for the overall growth of the Indian aviation sector and has taken various initiatives to support the industry and encourage industries. The initiatives taken include:
  • In a major boost to the domestic MRO industry and the aviation sector, the government has announced that a uniform rate of 5% IGST will apply to the import of parts, components, testing equipment, tools and toolkits of aircrafts, irrespective of their HSN classification, subject to specified conditions.
    • As part of the announcements made in the Union Budget 2024-25, the period for export of goods imported for repairs has been extended from 6 months to one year. Also, the time limit for re-import of goods for repairs under warranty has been extended from 3 to 5 years.
    • A conducive aircraft leasing and financing environment has been enabled through budget incentives for India’s lone IFSC in GIFT CITY.
    • New MRO guidelines announced on 1^st September 2021, inter alia, abolish royalties and build in transparency and certainty in land allotments for MROs.
    • GST on direct maintenance, repair and overall (MRO) contracts of domestic organisations has been reduced from 18% to 5% with full Input Tax Credit with effect from 1^st April 2020.
    • Transactions sub-contracted by foreign OEMs /MRO to domestic MRO are treated as ‘exports’ with zero-rated GST w.e.f. 1^st April 2020.

Q6. The Directorate General of Civil Aviation (DGCA) has been recognized for its proactive approach to safeguarding passenger rights in India. Could you elaborate on the current initiatives and regulatory measures undertaken by the DGCA to further enhance passenger protection and address consumer grievances within the aviation sector?

1. DGCA is an aviation safety regulator. DGCA primarily deals with safety issues of air transport services operating to/from/within India and for the enforcement of civil air regulations, air safety and airworthiness standards issued in compliance with ICAO standards.

However, to ensure appropriate protection for air travellers, DGCA has issued passenger-centric regulations i.e. CAR Section-3, Series M. Part I, Part II and Part IV. By these regulations, DGCA ensures passenger protection in case of flight cancellations or delays, except during force majeure conditions or events and provision of assistance to passengers with reduced mobility. DGCA is closely monitoring the compliance of these regulations for all airlines. Through inspection of scheduled domestic airlines at various major airports on a continuing basis.

Grievance Cell

Recently, on 4^th April 2025, Standard Operating Procedures (SOP) were made to redress and review the passenger grievances in case of non-satisfactory redressal by the concerned airline. Through the said SOP, a larger number of Grievance Redressal Officers (GROs) were requested to be nominated for effective redressal of grievances.

Q7. With India’s aviation industry soaring to new heights and more passengers taking to the skies than ever before, it’s no surprise that challenges and grievances are also on the rise! Do you think the all-new Air Sewa portal app has what it takes to efficiently tackle airline issues and address public complaints, ultimately transforming the flying experience in India into something truly unforgettable?

A. The Ministry has launched the AirSewa Portal & Mobile App in 2016 for grievances, flight information, airport information and other services related to air travellers. AirSewa app bring together all the stakeholders on a common platform to ensure timely and effective handling of customer grievances and to disseminate real-time and effective handling of customer grievances and to disseminate real-time data. DGCA is one of the stakeholders of AirSewa. DGCA mostly receives grievances which are filed by the general public, mainly related to safety, airworthiness, licensing, medical, Permit and permission, examination and manufacture etc. The grievances related to airlines received are transferred directly to airlines through AirSewa itself for disposal.