New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) and the civil aviation ministry are looking at the possibility of relaxing foreign direct investment norms to attract bidders for national carrier Air India, an official said. The government for long has been trying to sell debt-ridden Air India but could not attract bidders. It has now again decided to call bids for sale next month.
In the aviation sector, 100 per cent FDI is allowed under automatic route for MRO (Maintenance, Repair, Overhaul), ground handling, and aircraft purchase.
"But in airline operation, there is an issue of substantial ownership and effective control. So there, we are talking to the civil aviation ministry to see whether they are interested in liberalising it," the official said.
"It is felt that if you allow 100 per cent foreign direct investment (FDI), probably it will have a better effect on the Air India bidding prospects. The civil aviation ministry is also aware of that. We are taking it up with them also," the official added.
The airline is sitting on a debt pile of around Rs 58,000 crore, besides huge accumulated losses running into thousands of crores.
28/10/19 PTI/Economic Times
To Read the News in full at Source, Click the Headline
In the aviation sector, 100 per cent FDI is allowed under automatic route for MRO (Maintenance, Repair, Overhaul), ground handling, and aircraft purchase.
"But in airline operation, there is an issue of substantial ownership and effective control. So there, we are talking to the civil aviation ministry to see whether they are interested in liberalising it," the official said.
"It is felt that if you allow 100 per cent foreign direct investment (FDI), probably it will have a better effect on the Air India bidding prospects. The civil aviation ministry is also aware of that. We are taking it up with them also," the official added.
The airline is sitting on a debt pile of around Rs 58,000 crore, besides huge accumulated losses running into thousands of crores.
28/10/19 PTI/Economic Times
0 comments:
Post a Comment