Summary: Indian government to introduce Cape Town Convention Bill during monsoon session to streamline aircraft financing and leasing, attract foreign investment, and enhance aviation sector efficiency. Bill includes legal framework, centralized registry, and creditor certainty. Expected to bolster industry and boost India’s economic progress.
In a significant development for the aviation industry, the Indian government has expressed its intention to table the Cape Town Convention Bill during the upcoming monsoon session of Parliament. The bill, which aims to streamline aircraft financing and leasing activities in the country, is expected to bring numerous benefits to the aviation sector.
The Cape Town Convention is an international treaty designed to facilitate asset-based financing and leasing of aircraft and other high-value mobile equipment. By adopting the convention, India aims to attract foreign investment and improve the overall efficiency and transparency of aircraft financing transactions. The bill aligns with the country’s goal of boosting its aviation sector and making India a global hub for aircraft leasing.
By implementing the Cape Town Convention, India aims to enhance its reputation as an attractive destination for aviation-related investments. The convention’s adoption will signal India’s commitment to international best practices and adherence to standardized procedures for aircraft financing and leasing. It will also align the country with several other nations that have already implemented the convention, thereby facilitating cross-border transactions and fostering global cooperation in the aviation sector.
The monsoon session of Parliament is scheduled to commence on July 17, 2023. The Cape Town Convention Bill will be among the key legislations to be presented during the session, signaling the government’s determination to promote a favorable business environment for the aviation sector and bolster India’s position as a global aviation hub.
