Cabinet may hike FDI limit in aviation

New Delhi: A policy decision to raise the cap on FDI in setting up cargo carriers, operation of sea-planes and establishing a maintenance, repair and overhaul facility for aircraft and engines is likely to be taken by the Union Cabinet tomorrow.
The Cabinet is also expected to approve a development project for the international airport and a national cargo hub at Nagpur and a modernisation project for the Kannur airport at the meeting, informed sources said.
The Civil Aviation Ministry is understood to have proposed allowing of 100 per cent FDI in sea-planes and helicopter operations, as also in MRO facilities.
As per the proposal, the prevailing limit of 49 per cent FDI in cargo airlines is likely to be raised to 74 per cent, with foreign airlines being allowed to pick stake in these subject to a maximum of 49 per cent, under the overall 74 per cent cap.
17/01/08 Press Trust Of India/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Foreign Jan 2008, Indian Aviation- In General Jan 2008