Nepal's civil aviation authority split bill nears cabinet approval
Dhaka: Nepal's government has brought a bill to divide the Civil Aviation Authority of Nepal (CAAN) into separate regulatory and service-provider entities to its final stage. The cabinet is expected to approve it, and it will be tabled in parliament within a week.
Officials at the Ministry of Culture, Tourism and Civil Aviation said preparations are underway to secure the cabinet decision within seven days.
"The Civil Aviation Authority bill is in its final stage," a ministry official confirmed.
Under the proposed restructuring, one entity would handle aviation safety, oversight, and regulation. The other would operate and manage aviation services and infrastructure.
Tourism Minister Khadak Raj Poudel has been pushing the bill forward. He said the draft has been prepared and sent for legal review. He argued that it is no longer appropriate to keep regulatory and service-provider functions under one institution and legal framework.
Poudel added that the legislation would also create a clearer legal basis for regulating domestic airlines and other aviation service operators.
The government believes the separation would allow the regulator to carry out oversight without being involved in the commercial and operational activities it is supposed to monitor.
The restructuring is also seen as vital to addressing international safety concerns, particularly Nepal's continued presence on the European Union's aviation safety list.
Authorities expect a dedicated and more independent regulator to strengthen oversight of airlines, airports, and other operators. They also hope it will help resolve shortcomings identified by international aviation authorities and eventually secure Nepal's removal from the EU list.
The reform is not entirely new. The split has been discussed for years, with successive governments attempting to introduce separate legislation for the regulator and the service provider. The latest move seeks to revive that legislative process.
If the Cabinet approves the bill, it will face further scrutiny in Parliament before becoming law. It would be one of the most significant institutional changes in Nepal's civil aviation sector.
