Govt puts off decision on raising FDI cap in civil aviation

New Delhi: The Union Cabinet on Thursday deferred a decision on raising the cap on foreign direct investment in the civil aviation sector."The issue has been deferred," Mr P R Dasmunsi, Information and Broadcasting Minister said when asked whether the Cabinet had considered the proposal by the Civil Aviation Ministry.
The Cabinet was to take a policy decision on the Civil Aviation Ministry's proposals to enhance the 49 per cent limit in non-scheduled airlines, chartered and cargo carriers to 74 per cent, without any direct or indirect participation of any foreign airl ine.
The ministry has also proposed to raise the FDI cap for ground handling services to 74 per cent through the automatic route and to 100 per cent via same route for setting up of maintenance, repair and overhaul (MRO) facilities and flying and technical tr aining institutions, besides in helicopter and sea-plane services.
Mr Praful Patel, Civil Aviation Minister has been vocal in his support to launch seaplane operations in the country, which has a vast coastal belt.
He has also been supportive of expanding helicopter operations, not just to connect far-flung and hilly areas, but also for purposes such as medical emergencies.
17/01/08 Business Line

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