Cabinet may consider FDI by foreign airlines before budget

New Delhi: The civil aviation ministry's proposal to allow foreign capital by international airlines in cash-strapped domestic carriers may come up for the cabinet's approval before the budget session, a minister said Tuesday.
"We will send a proposal in regard to foreign airlines entering domestic carriers through FDI (foreign direct investment) to the commerce ministry and from there to the cabinet," Civil Aviation Minister Ajit Singh told reporters here.
"This may happen before the budget."
Currently, foreign airlines are not allowed to directly invest in Indian carriers for security reasons. However, 49 percent of FDI is allowed by non-airline players.
On Jan 17, a group of ministers (GoM) headed by Finance Minister Pranab Mukherjee agreed to draft a cabinet note proposing a 49 percent cap on FDI by foreign carriers' in domestic airlines.
Before this, various government departments has proposed different investment caps, from 24 percent to 26 percent. The commerce ministry's department of industrial policy and promotion (DIPP) had suggested a 26 percent cap.
31/01/12 Zee News

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