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Our Bureau

New Delhi, Nov. 2 International airlines will have to wait a bit longer for picking up a stake in domestic airlines.

The Government has decided not to raise the cap of 49 per cent in the foreign direct investment through the automatic route in domestic airlines. Foreign airlines are, however, still barred from any direct or indirect participation in domestic airlines.

However, foreign direct investment (FDI) up to 74 per cent would be allowed through the automatic route for setting up a non-scheduled, charter or cargo airline and also ground handling services, as per the revised foreign direct investment policy prepared by the Ministry of Commerce and Industry. The revised policy would now have to be cleared by the Union Cabinet.

The Government also plans to allow 100 per cent NRI investment through the automatic route for setting up non-scheduled, charter and cargo airlines as also for ground handling services.

The Government plans to allow 100 per cent FDI through the automatic route for the setting up of maintenance, repair and overhaul (MRO) facilities, flying training institutes, technical training institutes and helicopter or seaplane operations.

The Government has also proposed that the domestic air transport be reclassified as domestic scheduled passenger airline sector.

More Stories on : Airlines | Foreign Direct Investment | Policy

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