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| CoS to meet on Nov 17 on FDI in aviation |
| BS Reporter / New Delhi Nov 06, 2009, 01:05 IST |
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The Committee of Secretaries (CoS), headed by Cabinet Secretary KM Chandrasekhar, will meet on November 17 to review the foreign direct investment (FDI) in the aviation sector, among other sensitive sectors. The government is looking at a proposal to increase the FDI limit to 74 per cent.
As of now, FDI in civil aviation is allowed in airports and domestic scheduled passenger airlines, non-scheduled airlines, chartered airlines, cargo airlines and helicopter and seaplane services.
For airlines, FDI allowed in the aviation sector is 49 per cent. However, non-resident Indians can own 100 per cent in an airline, but no direct or indirect equity participation by foreign airlines is allowed.
In the case of greenfield airport projects, 100 per cent FDI is allowed under the automatic route, which is subject to sectoral regulations notified by the ministry.
The Group of Minister (GoM) for aviation, headed by Finance Minister Pranab Mukherjee, is discussing increasing the FDI limit to 74 per cent. The GoM is meeting on November 12 to discuss equity infusion in Air India, which has accumulated losses of Rs 7,200 crore.
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