Sunday 13 November 2011
Govt to consider FDI in aviation
The Kingfisher crisis could force UPA-2 to take a call on at least one long-pending issue: allowing foreign airlines to invest in Indian carriers.
A day after this paper wrote a Times View backing the entry of global carriers in domestic aviation, highly-placed sources said a proposal is being sent to the Cabinet for a decision on allowing such strategic investment in an industry that is desperately in need of large cash infusion.
The aviation ministry is likely to propose that permission be given for investment up to 24% by global airlines companies in the domestic sector. The department of industrial policy and promotion (DIPP), on the other hand, is proposing slabs of 26%, 49% or 51%. The matter could come up for discussion in the Cabinet within the next month, said high-level officials in the government.
A day after this paper wrote a Times View backing the entry of global carriers in domestic aviation, highly-placed sources said a proposal is being sent to the Cabinet for a decision on allowing such strategic investment in an industry that is desperately in need of large cash infusion.
The aviation ministry is likely to propose that permission be given for investment up to 24% by global airlines companies in the domestic sector. The department of industrial policy and promotion (DIPP), on the other hand, is proposing slabs of 26%, 49% or 51%. The matter could come up for discussion in the Cabinet within the next month, said high-level officials in the government.
