Friday, December 29, 2006

FDI cap in airlines may go up to 74%

New Delhi: The government is considering a proposal to increase the foreign direct investment (FDI) limit in scheduled domestic carriers to 74% from 49%.
The idea is being mooted to increase the funding options for domestic airlines, which have drawn up huge expansion plans. Indian carriers are expected to buy close to 480 aircraft in the next five years involving an investment of about $30 billion.
The idea of hiking FDI in domestic carriers have been doing the rounds for quite some time, but the government now seems to have reached a broad consensus on the issue, he added.
29/12/06 Sunny Verma/Economic Times