Indian aviation sector regulator, DGCA today released guidelines for foreign direct investment (FDI) in the sector. According to the guidelines, the regulator will continue with 49% foreign investment limit in the aviation sector which includes both FDI and foreign institutional investor (FII) investments.
According to the guidelines, all foreign nationals working with the airlines will have to be cleared by the Ministry of Home Affairs (MHA). The guidelines also require majority board directors to be Indian citizens.
The FDI policy in the civil aviation sector would be subject to the Aircraft Act and Aircraft rules according to the guidelines. The guidelines come a day before the Foreign Investment Promotion Board (FIPB) takes up the proposal for joint-venture between AirAsia, Tata and Arun Bhatia. Tata Group and Malaysia's low-cost carrier AirAsia are looking at launching a new airline in the country.
05/03/13 Moneycontrol.com
