Wednesday, June 26, 2013

Aviation ministry not keen on 74% FDI in domestic airlines

New Delhi: Reluctance on the part of the civil aviation ministry is likely to scuttle the finance ministry's plans to raise the FDI cap in domestic airlines to 74% from 49% at present.
While a panel headed by department of economic affairs secretary Arvind Mayaram has recommended that the sectoral FDI cap for domestic airlines be raised to 74%, the civil aviation ministry is not keen on the proposal as it has not received any such request from the industry and also because a number of changes in the regulations and policies would be required to implement such a proposal.
"Apart from changes in the civil aviation regulations, to raise the cap to 74%, we would also need to shift towards an 'open skies' policy and that would take a lot of time," said a senior aviation ministry official. "We have not yet received any request from the industry to raise the cap, so we are not sure how this would help the industry. We are not keen on raising the FDI cap immediately."
26/06/13 Arup Roychoudhury/Debabrata Das/Indian Express