KATHMANDU, Feb 20: The government is planning to limit foreign investment in flying schools, and repair and maintenance institutions concerning the aviation industry.
The National Aviation Policy, 2076 (2020) draft has proposed 75% foreign investment in flying schools and repair and maintenance institutions. The government had opened investment up to 95% in both sectors in the Aviation Policy, 2063 (2006). The government will provide permission for foreign investment in aircraft operation, training, repair and maintenance and passenger service provider industries.
However, investment in international airlines and the domestic airlines has not been amended. International airlines can have up to 80% foreign investment, whereas the domestic airlines can receive 49% and passenger service provider industries up to 75% foreign investment. The policy allows the investment of native/ foreign private sector in the development of structure of air transport such as airports and infrastructures like roads, terminal buildings, communication and guide in the premises of airport, and operating other industries and organizations there.
The government will make a provision to issue residential visas to expatriate personnel who are involved in any industry, business, service and project related to air transport and such visas will remain valid until such foreign investment exists in Nepal.
The policy drafting committee has handed over the final draft to the ministry in Kathmandu on Wednesday.
The policy also states that the international airlines must have Rs 500 million paid-up capital to get the permission for establishment and operation and to receive the Air Operator's Certificate (AOC). The company should also have additional Rs 2 billion working capital.
For the establishment and operation of domestic airlines, the company should have a minimum of Rs 250 million paid-up capital and Rs 500 million working capital.
As per the draft of the policy, to operate a flying school, Rs 50 million paid-up capital is needed and to acquire AOC, the company should have a minimum of Rs 150 million working capital. Similarly, to establish an Approved Training Organization (ATO) organization, the company needs to have Rs 50 million paid-up capital and to bring it into operation, an additional Rs 100 million working capital should be presented.
For maintenance and repair organization (MRO), the company should have at least Rs 50 million paid-up capital and to operate the institution, it should have Rs 250 million working capital.
The National Aviation Policy 2050 (1993) was repealed in 2007 by putting the Aviation Policy 2063 (2006) into place.