Mumbai/New Delhi: Civil aviation minister Ajit Singh on Friday said the sectoral cap for foreign investment in domestic airlines remains unchanged at 49%. Singh cleared the air following confusion created by a commerce ministry press note which suggested that sectoral cap was revised to allow foreign investment over 49%.
Last Friday, the Centre revised rules allowing foreign airlines to invest in domestic airlines. A formal notification was issued on Thursday. The notification said that 49% cap will subsume FDI (foreign airlines) and foreign institutional investment (FIIs) in the airlines.
However, on Friday the commerce ministry while responding to media queries on the issue said FDI and FII will not be subsumed.
The commerce ministry's clarification suggested that the foreign airlines could invest upto 49% in paid up capital of the airline irrespective of the existing or future foreign institutional investment.
21/09/12 Disha Kanwar/Business Standard
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Last Friday, the Centre revised rules allowing foreign airlines to invest in domestic airlines. A formal notification was issued on Thursday. The notification said that 49% cap will subsume FDI (foreign airlines) and foreign institutional investment (FIIs) in the airlines.
However, on Friday the commerce ministry while responding to media queries on the issue said FDI and FII will not be subsumed.
The commerce ministry's clarification suggested that the foreign airlines could invest upto 49% in paid up capital of the airline irrespective of the existing or future foreign institutional investment.
21/09/12 Disha Kanwar/Business Standard
