KATHMANDU: The Cabinet meeting on Friday gave permission to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to split the Civil Aviation Authority of Nepal (CAAN) into two different entities — regulatory body and air navigation services provider.

“Since the Cabinet has given permission to split CAAN into two entities, MoCTCA and CAAN will frame a new act to implement the decision,” said Sanjeev Gautam, director general at CAAN. He further mentioned that after the formulation of the new act, MoCTCA will first forward it to the Parliament for approval. “After it is endorsed by the Parliament it will come into implementation.” In 2012, the government had formally announced that CAAN would be divided into two separate autonomous bodies.

The government had said it would create two entities by dividing CAAN so as to improve the regulatory mechanism and also to develop civil aviation infrastructure.