**Summary:**
The Protection of Interests in Aircraft Objects Bill, 2025, was enacted to implement the Convention on International Interests in Mobile Equipment and its related protocol signed in Cape Town in 2001. The bill received Presidential assent on April 16, 2025, and came into effect on May 1, 2025. The Ministry of Civil Aviation anticipates an 8-10% reduction in aircraft leasing costs due to this legislation, according to airline reports. Since the enactment of the Act, 20 leased aircraft have been registered under the new legal framework. The government has established an International Financial Services Centre (IFSC) at GIFT City and implemented regulatory and fiscal reforms, including tax exemptions and holidays, to align the aviation leasing ecosystem with global practices and promote domestic aircraft leasing and financing. The information was provided by the Minister of State in the Ministry of Civil Aviation, Shri Murlidhar Mohol, in response to Lok Sabha Unstarred Question No. 3107 on August 7, 2025.
Key Entities Referenced
Ministry of Civil Aviation: The Indian government ministry responsible for the formulation of national policies and programmes for the development and regulation of the Civil Aviation sector.
Lok Sabha: The lower house of the Parliament of India.
Aircraft Objects Bill, 2025: A bill regarding the protection of interests in aircraft objects, passed by the Parliament of India.
Adoor Prakash: Member of Parliament who raised a question regarding the Aircraft Objects Bill, 2025.
Murlidhar Mohol: Minister of State in the Ministry of Civil Aviation who provided the answer to the parliamentary question.
Parliament: The legislative body of the Government of India.
Convention on International Interests in Mobile Equipment: An international treaty intended to provide international standards for registration of ownership of, security interests in, and other rights associated with certain categories of mobile equipment.
GIFT City, Gujarat: A planned business district in Gujarat, India, where the International Financial Services Centre (IFSC) is located.
GOVERNMENT OF INDIA
MINISTRY OF CIVIL AVIATION
LOK SABHA
UNSTARRED QUESTION NO. : 3107
th
(To be answered on the 7 August 2025)
AIRCRAFT OBJECTS BILL, 2025
3107. ADV. ADOOR PRAKASH
Will the Minister of CIVIL AVIATION
be pleased to state:-
(a) the present status of the Protection of Interests in Aircraft Objects Bill,
2025 along with its expected impact on aircraft leasing in the country;
(b) the number of aircrafts leased under the new legal framework since its
enactment; and
(c) the initiatives being taken to harmonise the aviation leasing ecosystem of
the country with global practices?
ANSWER
Minister of State in the Ministry of CIVIL AVIATION
(Shri Murlidhar Mohol)
(a) In order to implement the Convention and Protocol, 'The Protection of
Interests in Aircraft Objects Bill, 2025' was passed by the Parliament and
thereafter has received Presidential assent on 16th April, 2025. India had
acceded to the Convention on International Interests in Mobile Equipment
and the Protocol to the Convention on International Interests in Mobile
Equipment on Matters Specific to Aircraft Equipment signed in Cape Town
on 16th November, 2001. The airlines have informed that through the
enactment of the legislation, aircraft leasing costs are likely to be reduced by
8% to 10%.
(b) There are total 20 leased aircraft registered under new legal framework
upon enactment of the Protection of Interests in Aircraft Objects Act, 2025 on
1st May, 2025.
(c) The Government has setup International Financial Services Centre (IFSC)
at GIFT City and has harmonised the ecosystem of the country with global
practices. Further, Government has undertaken various regulatory and fiscal
reforms such as tax exemptions, holidays etc. to promote aircraft leasing and
financing within the country.*****