Financial Daily from THE HINDU group of publications
Wednesday, May 25, 2005
Financial Daily from THE HINDU group of publications Wednesday, May 25, 2005 |
|
|
|
|
|
Home Page
-
Foreign Direct Investment Logistics - Airlines No immediate plans to review FDI cap in civil aviation: Minister Our Bureau
New Delhi , May 24 THE Government has no immediate plans to review the foreign direct investment limit in the domestic aviation sector, the Minister for Civil Aviation, Mr Praful Patel, said hereon Tuesday. "The present 49 per cent cap on foreign direct investment in the aviation sector is sufficient," the Minister told newspersons. Besides, any review of the FDI ceiling had to be done by the Union Cabinet, Mr Patel said. The Minister was speaking to the media after officially flagging off the flight of SpiceJet airline. The Government recently hiked the cap in the domestic aviation sector to 49 per cent from the earlier level of 40 per cent. However, foreign airlines are not allowed to pick up a stake in domestic airlines. Admitting that infrastructure was a cause of concern, Mr Patel said that the Government was working on improving airport infrastructure. "The Ministry of Civil Aviation is moving ahead assuming that the compounded annual growth rate of the sector will be 20 per cent during the next few years," he said. In response to a question on the status of the fleet acquisition plan of Indian Airlines, the Minister said that a note for getting the approval of the Cabinet Committee on Economic Affairs (CCEA) was already in "circulation." The airline will be in a position to enter into an agreement with the European aircraft manufacturer Airbus Industrie for delivery of the 43-aircraft only after the proposal has been cleared by the CCEA. However, the Government has given IA "full liberty" to fly wherever it wants, Mr Patel said and added that in future if the airline asks for flights to the US, the UK, Europe or the Far East, it will be given permission.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|