Govt mulls raising FDI cap in air cargo to 74 pc'

Mumbai: The government plans to raise the FDI cap in air cargo business to 74 per cent as part of efforts to further open up the sector for foreign investment, Civil Aviation Minister Praful Patel said on Wednesday.
"The FDI investment in cargo sector is proposed to be raised to 74 per cent from the present 49 per cent. The FIPB and Commerce Ministry are likely to give their go ahead shortly," he told reporters here.
Patel, who flagged-off Air India's first dedicated freighter aircraft to Europe, also said Air India and Indian, the two state-owned carriers that are being merged, plan to ramp up their cargo operations to tap the growing segment.
Patel said owing to the upsurge in import-export demand combined with the open-sky policy and globalisation factors, Air India had decided to ramp-up its cargo operations.
27/06/07 PTI/Economic Times

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Categories: Cargo Jun 2007, Foreign Jun 2007, New Jun 2007