New FDI policy for aviation unveiled

The Government today (Jan 30) has approved certain changes in the FDI permitted in civil aviation activities.
· FDI in Air Transport services would continue to be capped at 49% on the automatic route and 100% for Non-resident Indians (NRI), subject to no direct or indirect participation by foreign airlines. This segment would be reclassified as Domestic Scheduled Passenger Airline Sector.
· FDI up to 74% may be permitted on the automatic route for Non Scheduled airlines, Chartered airlines and Cargo airlines. No direct or indirect participation by foreign airlines would be allowed in non-scheduled airlines and chartered airlines. NRI investment would be allowed up to 100% on the automatic route.
· FDI up to 74% may be permitted on the automatic route for Ground handling Services subject to sectoral regulations and security clearance. NRI investment would be allowed up to 100% on the automatic route.
§ FDI up to 100% may be permitted on the automatic route for Maintenance and Repair organizations; flying training institutes; technical training institutions; and helicopter services/seaplane services in the aviation sector requiring DGCA approval.
30/091/08 Press Information Bureau (press release)

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