{"id":161175,"date":"2025-04-05T19:34:27","date_gmt":"2025-04-05T14:04:27","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=161175"},"modified":"2025-04-05T21:46:10","modified_gmt":"2025-04-05T16:16:10","slug":"protection-of-interest-in-aircraft-objects-bill","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/protection-of-interest-in-aircraft-objects-bill","title":{"rendered":"The Protection of Interest in Aircraft Objects Bill, 2025"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Protection of Interest in Aircraft Objects Bill, 2025 was\u00a0 passed in Lok Sabha recently, following its earlier acceptance in the Rajya Sabha.<\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>About the Protection of Interest in Aircraft Objects Bill, 2025<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Aim: <\/b><span style=\"font-weight: 400;\">To align <\/span><b>India\u2019s aircraft leasing and financing ecosystem with global standards.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It marks a critical step in deepening <\/span><b>investor confidence<\/b><span style=\"font-weight: 400;\"> in India\u2019s rapidly growing aviation market.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Bill builds on the framework of the <\/span><b>Cape Town Convention of 2001<\/b><span style=\"font-weight: 400;\">, which aimed to simplify and <\/span><b>standardize international leasing agreements.\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>India formally adopted this convention in 2008<\/b><span style=\"font-weight: 400;\">, but gaps in legal enforcement led to higher leasing costs\u2014typically 8 to 10 percent higher than other nations.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With this bill, India seeks to plug those gaps, providing legal certainty to aircraft financiers and reducing costs for Indian carriers.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Key Features of the Bill<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Empowers the <\/span><b>Central Government to frame rules<\/b><span style=\"font-weight: 400;\"> to implement the Convention and Protocol.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Designates the <\/span><b>DGCA (Directorate General of Civil Aviation) as the Registry Authority.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>DGCA will handle registration and de-registration of aircraft<\/b><span style=\"font-weight: 400;\"> and related assets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creditors must <\/span><b>notify the DGCA<\/b><span style=\"font-weight: 400;\"> before initiating any recovery action in case of payment defaults.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the event of a default, <\/span><b>creditors can recover aircraft, helicopters, or engines<\/b><span style=\"font-weight: 400;\"> within two months (or within a mutually agreed time frame).<\/span><\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7984%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\">\n<h2><span style=\"font-size: 18pt; color: #000000;\"><b>Cape Town Convention<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The Cape Town Convention of 2001 is\u00a0 formally known as the <\/span><b>Convention on International Interests in Mobile Equipment.<\/b><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It is a multilateral treaty designed to <\/span><b>standardize transactions involving movable property \u2014<\/b><span style=\"font-weight: 400;\"> primarily high-value, mobile assets.<\/span><\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>Key Details<\/b><\/span><\/h3>\n<ul>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Adopted: November 16, 2001, in Cape Town, South Africa<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Came into force: March 1, 2006<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>India formally adopted this convention in 2008<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Administered by: UNIDROIT (International Institute for the Unification of Private Law)<\/b><\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>Purpose<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">The Cape Town Convention facilitates the financing and leasing of high-value mobile equipment by creating an international legal framework.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000;\">This reduces risk for lenders and lowers the cost of financing.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>It applies to three specific Protocols (so far)<\/b><\/span><\/h3>\n<ol>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Aircraft Equipment (2001) \u2013 Also called the Aircraft Protocol<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Railway Rolling Stock (2007) \u2013 Luxembourg Protocol<\/b><\/span><\/li>\n<li aria-level=\"1\"><span style=\"color: #000000;\"><b>Space Assets (2012) \u2013 Berlin Protocol<\/b><\/span><\/li>\n<\/ol>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; 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