Security concerns may ground foreign investment in aviation

New Delhi: Security concerns could again derail the Government's plans of allowing foreign airlines to pick up a minority stake in Indian carriers.
“There are still concerns in certain quarters about allowing investment from some countries. We cannot be selective about allowing country ‘A' to invest in a domestic airline but shooting down the proposal of country ‘B'. In the given scenario, the proposal to allow a foreign airline to invest in domestic carriers is likely to hit a road block at the moment,” a person in the know said.
Recently, the Department of Industrial Policy and Promotion moved a proposal to allow foreign airlines to pick up a minority stake in domestic airlines. At the moment, foreign airlines are barred from having a direct or indirect stake in a domestic carrier. A final decision on whether to allow or disallow foreign airlines to pick up equity in Indian carriers will only emerge after the Cabinet either accepts, rejects or keeps the proposal in abeyance.
20/11/11 Shishir Sinha/Ashwini Phadnis/Business Line

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Categories: Foreign Nov 2011, New Nov 2011