Govt's weighing 74% FDI in small airlines: Patel

New Delhi: Civil aviation minister Praful Patel said on Tuesday that the government is considering a hike in foreign direct investment (FDI) limit to 74% in air cargo, helicopters and sea-planes. The current FDI limit in the airline sector is 49%.
Mr Patel said that there was no proposal to allow 74% FDI in domestic airlines. The bar on foreign airlines investing in domestic airlines would also stay. ET had reported, in its edition dated November 30, that FDI in air cargo, helicopter operations and sea-planes was being increased to 74%.
Mr Patel said even the current ceiling of 49% FDI in the domestic airlines was not being fully met, indicating that there was no possibility of a review of this decision at the moment. The plan to raise FDI in airline sub-sectors is aimed at catalysing growth in these areas.
06/12/06 Economic Times

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