The Hindu Business Line : Govt mulls 74 pc FDI in some aviation segments

The Government is examining whether to allow foreign direct investment up to 74 per cent in cargo operation, non-scheduled airlines, helicopter and seaplane operations, the Minister for Civil Aviation, Mr Praful Patel, has said.

"The Government is keen to attract FDI and is looking to open the market although no decision has been taken yet. While we have an overall FDI cap of 49 per cent in the aviation sector, we have to liberalise areas such as air cargo, helicopters and seaplanes.

"Deliberations are on allowing 74 per cent FDI in some sectors of civil aviation. We have not seen the type of growth in these sectors as has been noticed in the passenger airline sector," the Minister said, while inaugurating a two-day seminar on `Cargo in emerging markets'.

The seminar has been organised by the International Air Travel Association (IATA).

The Minister was non-committal on whether foreign airlines will be allowed to pick up a stake in the aviation sectors where 74 per cent FDI would be allowed.

"Please wait till the policy is firmed up. At the moment we cannot say anything," Mr Patel added.

Official sources indicated that the need for such a policy was felt as at present all investments in the aviation sector are viewed through the 49 per cent FDI level ceiling.

"There is a need to have a clear policy for what the limit should be for FDI in other sub sectors of aviation. This is likely to become clearer when the new Government policy is announced," officials said.

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