FDI in domestic carriers unlikely to be increased beyond 74%

New Delhi: The government is considering two options to raise the cap on foreign direct investment in domestic airlines. The first option is to raise the cap to 74% from the present 49% and the second one is to cap it at a level below 74%.
Government officials said the FDI limit was likely to be increased anytime soon. A section of the industry sought 100% FDI in domestic carriers, but the idea was rejected at the recent UPA-Left co-ordination committee meeting, officials said. The government was expected to further deliberate on the FDI issue before finalising the cap, they said.
“The FDI policy review is on. We have given our inputs to the commerce and industry ministry for raising FDI in certain segments,” civil aviation secretary Ashok Chawla told FE. But he did not discuss anything on the proposed increase in FDI in domestic carriers.
27/06/07 Sunny Verma & Arun S/Financial Express

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Categories: Foreign Jun 2007, General Aviation Jun 2007