Aviation FDI hears freedom call

New Delhi: The government may allow foreign airlines to pick up minority stakes in domestic carriers, as part of its upcoming FDI policy review later this month. Rules are also likely to be relaxed for foreign firms who are required to seek the approval of their domestic joint venture partners to set up units in the same area of business. However, opening up of multi-brand retail may not happen.
Moreover, the cabinet committee of economic affairs may take up for its approval foreign direct investments (FDI) of more than Rs 1,500 crore, against Rs 600 crore now.
Projects below Rs 1,500 crore will be considered by the Foreign Investment Promotion Board, which will reduce the time for clearing the proposals, officials said.
Civil aviation secretary Nasim Zaidi has said his ministry has received a request from the department of industrial policy and promotion (DIPP) — the nodal agency on FDI policy — to allow foreign airlines to invest in this country. He said the proposal “was under consideration and a decision on this would be taken soon”.
However, sources said, “Opening up of multi-brand retail, for which the discussion paper was also mooted by the government, may not find mention in the FDI revision nor extending the ceiling on defence production.”
21/03/11 R Suryamurthy/The Telegraph

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Categories: Foreign Mar 2011, Indian Aviation- In General Mar 2011