DIPP favours foreign airlines' investment in domestic carriers

New Delhi: The Industry Ministry is in favour of allowing foreign airlines to invest in domestic carriers, saying it would help the cash-crunch industry to raise equity, an issue that does not find support among many Indian airlines.
The Department of Industrial Policy and Promotion (DIPP), an arm of the industry ministry which deals with FDI related matters, has sent several letters to the Civil Aviation Ministry on the issue of allowing foreign carriers to invest.
In response to the DIPP letters, the Civil Aviation Ministry has said that the matter was under their consideration.
FDI up to 49 percent is allowed in domestic airlines or 100 percent for investments by NRIs, but the policy bars foreign airlines from investing, primarily on security grounds.
The proposal to allow foreign carriers to invest in domestic airlines has seen open support only by Kingfisher Airlines promoter Vijay Mallya.
21/09/11 ZeeBiz.com

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Categories: Foreign Sep 2011, Indian Aviation- In General Sep 2011, New Sep 2011