Mumbai, Sept. 2 -- The meeting focused on measures to build a robust, globally competitive ecosystem in step with India's rapidly expanding aviation sector.
India held the first meeting of the High-Level Committee (HLC) on Aircraft Leasing and Financing on Wednesday to deliberate measures for building a robust and globally competitive ecosystem, in step with the rapid expansion of the country's aviation sector.
In his opening remarks, Union Minister of Civil Aviation, Kinjarapu Ram Mohan Naidu said, "Last year, we organised the first Aircraft Leasing Summit in GIFT City. One of the key suggestions from stakeholders was the ratification of the Cape Town Convention, which we addressed through the enactment of the Protection of Interests in Aircraft Objects Act. This year, at the second Aircraft Leasing Summit, one of the suggestions I received from the industry was the formation of a High-Level Committee."
Naidu noted that aircraft leasing is an established and commercially viable business, with risks being progressively addressed through legal and regulatory measures. He suggested exploring mechanisms for greater allocation of bank credit to the sector and identifying joint ventures for skill development in aircraft leasing.
India's efforts to encourage leasing and boost lessor confidence are showing results, with 422 assets-including 250 aircraft and 87 engines-leased through the International Financial Services Centre (IFSC), alongside 474 leasing agreements signed.
Highlighting the importance of leasing, Naidu said that while India has been expanding airport infrastructure rapidly, with a new airport operationalised every 45 days, the availability of aircraft remains a bottleneck. With more than 85 per cent of the fleet of Indian carriers leased, he emphasised the need for continued stakeholder engagement to strengthen the ecosystem.
The committee also discussed taxation, regulatory frameworks, financing availability, and ease of doing business. Key issues included the potential for rupee-denominated financing, clarity on the applicability of General Anti-Avoidance Rules (GAAR), and the possibility of renegotiating the Double Taxation Avoidance Agreement framework with Ireland.
In his concluding remarks, Naidu stressed the need for a coordinated, time-bound approach to address regulatory, financing, and taxation issues. The committee agreed that proposed measures should be examined in consultation with ministries, departments, and stakeholders, with a focus on developing a predictable policy framework for aircraft leasing and financing in India.
Chaired by Naidu, the meeting was attended by Samir Kumar Sinha, Secretary, Ministry of Civil Aviation; Puneet Kansal, Additional Secretary, Ministry of Civil Aviation; senior officials from the Ministry of Finance, Department of Commerce, Directorate General of Civil Aviation, Reserve Bank of India, International Financial Services Centres Authority (IFSCA), and representatives of industry associations.
Published by HT Digital Content Services with permission from Infrastructure Today.