3. Power to Frame Rules:
(1) In order to implement the objectives of this Act Government of Nepal may frame Rules as required.
(2) Without prejudice to the generality of the powers conferred by Sub-section (1), such Rules particularly may provide for any of the following matters:
(a) Regarding conditions pertaining to establishment of an aerodrome at any place in Nepal, granting permission and prescribing fees for the same.
(b) Regarding complete prohibition of the use of aircraft in any part of aerial territory of Nepal or allowing flights only in particular conditions or times.
(c) Regarding adoption of any necessary means for the protection of the person and life of the general people in course of air flights.
(d) Regarding fixing the modalities for determining the amounts for compensation for any loss or damage which may be caused if any body’s house, building, shed, tower etc. are demolished wholly or in part in course of construction or operation of aerodrome or while regulating, restricting or prohibiting any construction work carried out at an aerodrome or aerodrome area.
(e) Regarding prohibition, restriction, prevention and regulation of carrying any substance by aircraft.
(f) Regarding grant of license to corporations operating air services, flying schools and the institutes engaged in the manufacture, repair and overhauling including test of aircraft and their parts.
(g) Regarding search of aircraft and carrying out rescue operations.
(h) Regarding controlling the noise of aircraft and preventing environmental pollution cause by the operation of aircraft.