New Delhi: Indian carriers hoping to attract investments from foreign airlines may have to wait longer as the government is yet to finalise its stand on a Civil Aviation Ministry proposal sent three years ago.
The proposal to allow foreign airlines to invest in a domestic airline is being examined, official sources said, adding that no guidelines have been worked out.
Currently, FDI up to 49 percent is allowed in domestic airlines or 100 percent for investments by NRIs, but foreign airlines are barred from investing primarily on security grounds.
The Civil Aviation Ministry had in 2008 proposed to the Department of Industrial Policy and Promotion to allow 26 of the total 49 percent FDI by foreign airlines that would enable their presence on the Boards of the Indian carriers in which they invest.
But the Ministry has opposed another proposal to allow foreign carriers to invest the entire 49 percent FDI, instead of 26 percent as suggested by it.
04/09/11 ZeeNews
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