Import of aircraft/aircraft engine/Helicopter on lease basis
A.P. (DIR Series) (2001-2002) Circular No. 24, dated 1-3-2002
Authorised
dealers are aware that the Reserve Bank is considering applications from
airline companies and air taxi operators for payment of the lease rentals for
import of aircraft/aircraft engine/helicopter on lease basis, based on the
approval issued by the Director General of Civil Aviation (DGCA), Government of
India.
2. It has been
decided that authorised dealers may allow remittance of payment of lease
rentals, opening of letter of credit towards security deposit etc. in respect
of import of aircraft/aircraft engine/helicopter on operating lease basis,
after verifying documents to show that necessary approval from the appropriate
authorities, like Ministry of Civil Aviation/Director General of Civil
Aviation, Government of India has been obtained. In this connection attention
is also invited to paragraph 8 of Annexure I to A.D.(M.A. Series) Circular No.
11 dated May 16, 2000.
3. It is
clarified that financial lease transaction i.e. the lease transaction
containing option to purchase the asset at the end of the lease period will
continue to require prior approval from the Reserve Bank of India.
4. Authorised
dealers may bring the contents of this circular to the notice of their
constituents concerned.
5. The
directions contained in this circular have been issued under Section 10(4) and
Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).