Nepal Moves to Separate Aviation Regulator and Service Provider

The government has registered the Bill to Amend and Consolidate Laws Relating to the Civil Aviation Authority of Nepal, 2083 at the Federal Parliament Secretariat, addressing the long-standing demand to separate aviation regulation from service provision. Presented by Minister for Culture, Tourism and Civil Aviation Khadak Raj Paudel (Ganesh), the bill proposes repealing the existing Civil Aviation Authority of Nepal Act, 2053 and restructuring CAAN as a specialized regulatory body. Under the proposed framework, the authority would focus on licensing, safety oversight, airworthiness certification, regulation, and setting aviation standards, while airport construction, operation, maintenance, and air navigation services would be handled by separate service-provider entities. The bill also proposes stricter penalties of up to Rs. 2.5 million for aviation safety violations, with repeat offenses attracting double punishment. It includes a two-year cooling-off period for senior officials to prevent conflicts of interest and grants aviation inspectors extensive powers, including authority to suspend flights or close airports in cases of serious safety risks. The proposed legislation also brings drones, paragliding, ultralights, hot-air balloons, environmental and noise pollution, and wildlife-related aviation risks under regulatory oversight. If enacted, the law will come into force on the 91st day after its authentication.