GoM gives nod to 49% FDI in civil aviation

New Delhi: Accepting a major demand of the cash-strapped aviation industry, the government on Tuesday said it would soon launch the process to allow foreign airlines 49 percent stake in Indian carriers.
A meeting between Finance Minister Pranab Mukherjee and Civil Aviation Minister Ajit Singh also decided to immediately release Rs 150 crore for payment of portion of pending salaries and allowances of Air India employees, including pilots.
Replying to questions after the 75-minute meeting, Singh said "the question was to allow foreign airlines to participate in FDI. I discussed it with the Finance Minister and he has agreed. We will bring out a note for the Cabinet now."
Allowing foreign airlines to pick up stake in Indian carriers would mark a major policy shift. Earlier foreign airlines were not allowed to invest in Indian airlines though foreign direct investment was allowed.
17/01/12 ZeeNews

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Categories: Foreign Jan 2012, Indian Aviation- In General Jan 2012