Tuesday, February 06, 2007

Govt may allow FDI in cargo airlines

While foreign airlines continue to be kept out from picking up stake in Indian aviation companies, the Government is now considering a proposal to allow foreign airlines to pick up a minority stake in domestic cargo airline operations.
"The Ministry has proposed allowing 100 FDI in sea plane, helicopter operations and setting up of Maintenance Repair and Overhaul (MRO) facility. Besides, we are also considering whether to allow foreign airlines to pick up a stake of up to 49 per cent in cargo airline," the Minister for Civil Aviation, Mr Praful Patel, said here on Monday on the sidelines of an international conference.
At present the FDI limit in cargo operations is pegged at 49 per cent but as in the case of civil aviation, foreign airlines are not allowed into this.
The thinking in the Government is to raise this 49 per cent limit to 74 per cent and possibly allow foreign airlines to pick up 49 per cent stake under the overall 74 per cent ceiling. These proposed changes in the FDI limits would be sent to the Union Cabinet shortly for their approval, Mr Patel added.
06/02/07 Moneycontrol.com