Press Information Bureau

Government of India
Ministry of Civil Aviation
24-April-2008 21:24 IST
Government approves policy for greenfield airports
The Government today approved the policy for Greenfield airports. Mandatory approval of the Central
Government for setting up of any greenfield airports have been dispensed with.
A Steering Committee would be set up under the chairmanship of Secretary (Civil Aviation) to coordinate
and monitor the clearances required from various agencies for setting up an airport.
A greenfield airport to be set up by the Airport Authority of India (AAI) or an Airport Company that is in
compliance of the guidelines and is beyond 150 km of an existing civilian airport would not require prior
approval of the Central Government. The Directorate General of Civil Aviation (DGCA) would be
competent to grant license foroperatin of the airport as per existing Rules and Notifications.
A Greenfield airport to be set up by the AAI or an Airport Company that is beyond 150 km of an existing
civilian airport but seeks redemption/ relaxation from any other guideline or existing Rule/Policy, would
be considered by the Steering Committee. The Committees recommendation would be forwarded to the
Ministry of Civil Aviation. In case of the Committee not being able to reach consensus, the proposal
would be placed before the Union Cabinet for a decision. The DGCA would consider such proposals for
grant of license only after the approval of the Central Government.
In case of an application by the AAI or an Airport Company to set up an airport within 150 km of an
existing airport, the application shall be considered by the Steering Committee. The Committee shall
consider all relevant facts and circumstances including contractual liabilities, if any. I t shall also take into
account whether the applicant has obtained relevant approvals required and make suitable
recommendations to the Ministry of Civil aviation. The Ministry shall consider the recommendation ad
decide whether approval for the airport project should be granted or not. DGCA shall consider a proposal
for grant of a license to the applicant only after approval has been granted by the Ministry.
Where an application to set up a greenfield airport is within 150 km and also seeks exemption/relaxation
from any extant Rules and Policies, the application shall be considered first by the Committee. The
Committee shall consider all relevant facts and circumstances including contractual liabilities, if any. The
Committee shall also take into account whether the applicant has obtained the approvals required under
the applicable laws from the authorities concerned. After considering the application, the Committee
shall make a suitable recommendation to the Ministry. The Ministry shall place the matter before Union
Cabinet for its consideration. DGCA would consider such proposals for grant of license only after the
approval of the Ministry is conveyed.
Airports for cargo and/or non-scheduled flights and for heliports need not be submitted for approval of
the Ministry of Civil Aviation and these cases may be considered and decided at the level of DGCA,
subject to applicable laws.
For setting up of an airport, approval would be required for technical, security and other location issues.
The policy indicates conditions to be complied with by an applicant to meet the various requirements in
this respect. In addition to this, Ministry of Home Affairs, Ministry of Defence, Airports Authority of India,
DGCA, BCAS. Met department would issue guidelines stipulating the conditions to be met by an
applicant.
Certain functions to be performed at the airport, such as air traffic services, security, customs,
immigration etc. would be reserved to be performed by Central Agencies. An airport company seeking a
license would be required to obtain clearances from these Agencies. These Agencies would notify their
respective guidelines. These services would be provided on a cost recovery basis. An MOU will be entered
between an airport company and the agencies performing any reserved activity regarding the rights and
obligations of each party.
MC/MK