New Delhi: The Ministry of Civil Aviation has shot down a proposal of the Ministry of Commerce & Industry to increase the FDI cap in scheduled airlines to 74% from the current 49% in wake of the controversies surrounding the infusion of foreign capital in the Jet-Etihad and AirAsia deals.
A senior official at the ministry said, “We are still testing waters after permitting foreign airlines to invest up to 49% in scheduled Indian carriers in September last year. A proposal was made by the Department of Industrial Policy and Promotion (DIPP) to increase FDI cap in scheduled airlines to 74%. We have turned down the proposal.”
As per the current FDI policy, foreign investment in scheduled air transport services is allowed up to 49% of the paid-up capital of an Indian carrier under the government approval route, provided that substantial ownership and effective control of the entity remains with the domestic company.
04/07/13 Sharmistha Mukherjee/Business Standard
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A senior official at the ministry said, “We are still testing waters after permitting foreign airlines to invest up to 49% in scheduled Indian carriers in September last year. A proposal was made by the Department of Industrial Policy and Promotion (DIPP) to increase FDI cap in scheduled airlines to 74%. We have turned down the proposal.”
As per the current FDI policy, foreign investment in scheduled air transport services is allowed up to 49% of the paid-up capital of an Indian carrier under the government approval route, provided that substantial ownership and effective control of the entity remains with the domestic company.
04/07/13 Sharmistha Mukherjee/Business Standard
