New Delhi: The Estimates Committee of Parliament has recommended removing the cap in Foreign Direct Investment in the civil aviation sector.
A report of the committee on the sector, adopted in the last meeting, noted that such a cap is limiting the growth of aviation sector in India. Though adopted in the panel, the report is yet to be tabled in Parliament.
The committee in a detailed report on the “development and regulation of civil aviation” said the benefits of opening up the passenger airlines sector for investment by foreign airline companies are manifold.
“Apart from addressing the shortage of funds, this would help raise the level of services for the consumers and promote healthy competition,” the report said adding that FDI cannot be the “sole solution” to the Indian aviation sector's debt problems.
The report, prepared by the Estimates committee headed by Mr Francisco Sardinha, noted that the national carrier Air India and many private airlines are running on loss.
15/04/12 AM Jigeesh/Business Line
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