Jet Airways, InterGlobe Aviation (IndiGo) and SpiceJet gained on Wednesday after the much-awaited national civil aviation policy that seeks to strengthen regional connectivity and tap the sector’s high growth potential was cleared by the Union Cabinet on Wednesday.

Shares of Jet Airways, InterGlobe Aviation (IndiGo) and SpiceJet closed 0.21 percent, 1.90 per cent and 3.51 per cent higher at Rs 561, Rs 1008 and Rs 66.40, respectively. Benchmark index BSE Sensex settled 330.63 points, or 1.25 per cent, up at 26,726.34.

Also Read: 5/20 to be replaced by 0/20 rule

Civil Aviation Minister Ashok Gajapathi Raju said the policy is a “game changer” and that the country’s aviation sector is poised to become the world’s third largest by 2022.

The government also scrapped 5/20 norms to allow Indian carriers to fly abroad and replaced it with 0/20 rule. The Cabinet also approved capping of airfares at Rs 1,200 for a 30 minute flights and Rs 2500 for an hour-long flight.

The new 0/20 rule implies that domestic airlines can fly abroad only when they have acquired a fleet of at least 20 aircraft. However, there is no restriction on number of years of operations before going abroad.

Earlier, it was also compulsory for airline companies to fly in India for five years before going abroad.

The Civil Aviation Ministry had sent the proposed policy to Cabinet for approval on June 3. The NDA government had for the first time unveiled the policy draft in November 2014, subsequently replacing it with another draft in October 2015.

(With agency inputs)