The Union Cabinet of the Council of Ministers approved on June 15, 2016, the National Civil Aviation Policy, 2016 (NCAP). The NCAP aims to provide a conducive framework for harmonised growth of various aviation sub – sectors including, development and modernisation of airports by State Governments, private players and under the Public Private Partnership (PPP) model.

Under the NCAP, the Ministry of Civil Aviation (MoCA) of the Government of India shall continue the development and modernisation of airports by State Governments, private players and under the PPP model. The development of new airports shall be undertaken by State Governments shall be by special purpose vehicles (SPVs) formed along with interested public sector undertakings such as the Airports Authority of India (AAI). MoCA shall endeavour to provide regulatory certainty in such activities by coordinating with various stakeholders in order to reduce airport charges, encouraging cost efficiency and ensuring safety and security, ensuring level playing field across various operators, coordinating with various authorities to provide multi – modal transport connectivity and ensuring a minimum level and standard of cargo facility for future concessions.

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