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Import of Aircraft/ Aircraft Engine/ Helicopter on Lease Basis
A.P. (DIR Series) Circular No. 24 dated
1st March 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. (MA 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) & Section 11(1) of the
Foreign Exchange Management Act, 1999 (42 of 1999).
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