Bharatiya Vayuyan Vidheyak Bill 2024 | 07 Dec 2024

Source: TH 

Why in News?

Recently, the Parliament passed the Bharatiya Vayuyan Vidheyak (BVV) Bill, 2024, which seeks to replace the Aircraft Act, 1934 (last amended in 2020), and bring major reforms to the aviation sector. 

What are the Key Features of the Bharatiya Vayuyan Vidheyak Bill, 2024? 

• Aircraft Act 1934: The Bill retains the provisions from the Aircraft Act, 1934, which established the DGCA (Directorate General of Civil Aviation), BCAS (Bureau of Civil Aviation Security), and AAIB (Aircraft Accidents Investigation Bureau). 
  • These bodies will continue to oversee safety, security, and accident investigations, respectively. 
  • The Bill provides a mechanism for appeals against the orders of DGCA or BCAS to the central government, which will be the final authority. 
• Single Window Clearance: The BVV Bill, 2024, moves the responsibility for managing Radio Telephone Operator Restricted (RTR) certifications from the Department of Telecom (DoT) to the DGCA. 
  • This change aims to streamline the licensing process for aviation personnel and address corruption in the DoT's RTR exams, ensuring more transparency under the DGCA's oversight. 
    • RTR certification, or RTR (A) for aeronautical purposes, is a license certifying a person's qualification to use radio communication equipment on an aircraft, primarily for air traffic control communication. It is mandatory for pilots in India. 
• Regulation of Aircraft Design: The Bill empowers the DGCA to regulate not only the manufacture, repair, and maintenance of aircraft but also the design and locations where aircraft are being designed. 
  • With these new powers, the DGCA can ensure more comprehensive and efficient oversight of the aviation sector in India. 
• Arbitrator Appointment: The Bill allows the Central government to unilaterally appoint an arbitrator (a person who is or has been qualified for appointment as a Judge of a High Court) to resolve compensation disputes related to land acquisition near airports.  

What are the Concerns Regarding the  BVV Bill, 2024? 

• Lack of Independence of DGCA: The Bill keeps the DGCA under direct government control, unlike independent regulators, and the Bill does not specify the qualifications or tenure of the DGCA head, which could result in potential conflicts of interest and influence from the central government. 
• Arbitration Process Issues: The unilateral appointment of an arbitrator for compensation disputes may violate the right to equality under Article 14 of the Constitution, as it undermines the impartiality and independence of the arbitration process. 
  • The Supreme Court stated that such appointments could violate the right to equality due to concerns about impartiality. 
  • By exempting the Bill from the Arbitration and Conciliation Act, 1996, the government risks bypassing standardised arbitration processes, leading to potential inconsistencies in adjudication. 
• Penalty Framework: The Bill allows the central government to set penalties for aviation offenses, raising concerns about potential inconsistency and fairness due to executive discretion rather than fixed legal guidelines. 

What are the Implications of  BVV Bill, 2024 for the Aviation Sector? 

• Streamlined Licensing: Bringing RTR certification under DGCA control aims to reduce corruption and delays in the certification process. 
• Improved Oversight: Expanded powers to regulate aircraft design and enforce penalties could enhance safety and compliance. 
• Regulatory Challenges: Concerns over the lack of independence for DGCA and government centralization may affect fairness and transparency. 
• Regulatory Burden on Private Airlines: Imposes severe penalties for offenses like dangerous flying, with fines up to one crore rupees and imprisonment, though the discretionary power for penalties raises concerns. 
  • New compliance requirements may increase costs for private operators. 

What is the Scenario of India’s Aviation Industry? 

• Rapid Growth in Passenger Traffic: Domestic air traffic in FY23 reached 306.79 million passengers, a 13.5% YoY growth, while international traffic rose 22.3% to 69.64 million passengers. 
• India is the third-largest domestic aviation market after the US and China. 
• Expanding Infrastructure: Operational airports increased from 74 in 2014 to 157 in 2024, with a goal of 350-400 by 2047. 
• Fleet Expansion: Indian carriers added 112 new aircraft in 2023, bringing the total to 771 planes, with plans to reach 1,100 by 2027. 
• Market and Revenue Growth: India’s aviation revenue is expected to grow by 15-20% in FY24 and 10-15% in FY25. 
  • Freight traffic showed steady growth, with domestic freight at 1.32 million tonnes and international freight at 2.04 million tonnes in FY24. 

What are India's Initiatives Related to the Aviation Industry? 

• Policy Interventions: 
  • National Civil Aviation Policy 2016: The NCAP 2016 aims to make flying accessible to the masses by enhancing affordability and connectivity, promoting ease of doing business, deregulation, simplified procedures, and e-governance.  
    • The Regional Connectivity Scheme-Ude Desh Ka Aam Naagrik (UDAN), is a key component of NCAP 2016. 
  • UDAN-RCS Scheme: Aims to improve regional air connectivity; operationalized 519 routes and benefited over 13 million passengers. 
  • FDI Policy: The Centre allows 100% Foreign Direct Investment(FDI) in aviation sectors like air transport and Maintenance, Repair, and Overhaul (MRO). 
• Infrastructure Modernization: Initiatives like Digi Yatra and NABH Nirman enhance operational efficiency and passenger experience. 
  • 21 Greenfield Airport projects have been approved, with 11 operationalized by 2023 (Donyi Polo Airport, Itanagar, Arunachal Pradesh is the first greenfield airport in India). 
    • Greenfield airports are aviation facilities built from scratch on undeveloped land, designed with eco-friendly features to minimize environmental impact. 
• Sustainability Efforts: Airports like Delhi and Mumbai achieved Level 4+ Carbon Accreditation. 
  • 73 airports fully use green energy, with solar energy, and new greenfield airports prioritize net-zero emissions. 

Way Forward 

• Transparent Arbitration Framework: Introduce independent third-party oversight for compensation disputes to uphold the constitutional right to equality under Article 14. 
• Strengthening Regulatory Independence: Consider restructuring the DGCA to function as an autonomous regulatory body to enhance impartiality and credibility. 
• Consistent Penalty Framework: Develop a clear and consistent framework for penalties related to aviation offenses, reducing the scope for executive discretion and ensuring fairness. 
• Inclusive Consultation Process: Engage with stakeholders, including airlines, aviation personnel, and the public, to gather feedback and address concerns. This can help build consensus and ensure the Bill's provisions are practical and effective.