The Hindu Business Line : `Govt to define civil aviation, set FDI limits in connected sectors'

TO FLY HIGHER: The Minister for Civil Aviation, Mr Praful Patel, and the Vice-President of the European Commission, Mr Jacques Barrot, at the EU-India Aviation Summit 2006 in the Capital on Thursday. — Ramesh Sharma

New Delhi , Nov. 23

The Government is working on defining the civil aviation sector and laying down the limits for foreign direct investment levels in other areas connected with the sector.

There is a need for clarity because FDI in aviation is viewed only in the context of the 49 per cent limit and the restriction on foreign airlines to invest in this sector.

"There is a need to open up areas such as the non-scheduled operations, cargo, helicopters and seaplanes operations in the country. We will welcome FDI in these sectors. No formal decision has been taken as yet but the Government will be looking into it," the Minister for Civil Aviation Minister, Mr Praful Patel, said while inaugurating the first India-EU aviation summit.

Asked whether foreign airlines or the promoter of a foreign airline would be allowed to invest their personal wealth in sectors connected with civil aviation, the Minister said that the Government would examine the issue "meaningfully" and look at it "differently from the rules relating to operation of scheduled airlines."

Earlier addressing the seminar, Mr Patel said that the growth witnessed in the aviation sector was likely to continue. "This year the growth in domestic air travel has been 50 per cent while in international air travel, it has been 25 per cent. These are not the kind of figures that will slow down. In the next 10-year horizon the sector is expected to grow at around 25 per cent annually," the Minister said. Seeking the cooperation of the EU in developing the sector, Mr Patel said that the Government was looking to create an aviation grid around the country.

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