The rotor tip clearance is a vital parameter to characterize turbomachinery performance. It is an essential measurement during engine development and testing. The efficiency of the major modules like fan, compressor and turbine depends on the optimum running clearances. The capacitive sensor is preferred for tip clearance measurements because of various inherent advantages. They are fabricated through complex processes for turbomachinery application and are expensive. These sensors are exposed to harsh engine environments and are likely to exhibit degraded performance. Insulation failure at sensing head, connector contamination and micro-cracks in the MI (Mineral Insulated) cable leads to noise in the signal output. Frequent mechanical failures are also seen due to work hardening of MI cables, lead connector detachments and failure of micro fins at interconnects. Fault fixing of these is tedious and very expensive. This paper presents the concerted effort in developing a simple capacitance sensor addressing potential sensor failure issues. The design features include simple construction, ease of sensor assembly, component realization and troubleshooting. The design also addresses all safety requirements. The sensor has a large sensing area (7.6 mm diameter) producing very stable, high-level signal. The developed sensor produces output that varies from 1 VP-P to 11 VP-P for blade-tip gaps between 3 mm to 0.4 mm respectively. Blade pass simulation studies across the sensor, display almost flat response at minimum clearance. This feature results in very minimal data acquisition errors. The sensor along with RC (Resistance-Capacitance) conditioning electronics was successfully used for clearance measurement on fan stage of gas turbine engine. Test results are in line with the predictions. Extensive tip clearance measurements on the engine validate the design. The current work provides an insight into the development of a simplex capacitance sensor for tip clearance measurement.