New Delhi: In a significant reform move, the government today allowed 100 per cent FDI in airlines and relaxed norms for overseas investments in brownfield airports. Aimed at attracting more funds into the aviation sector with a high growth potential, the NDA government's latest measure comes less than a week after the unveiling of the National Civil Aviation Policy.
The announcement also comes against the backdrop of persisting concerns over ownership and control at local carriers where foreign players have a substantial stake. Now, 100 per cent foreign investment will be allowed in "scheduled air transport service/domestic scheduled passenger airline and regional air transport service", an official release said.
Only non-airline players will be allowed to bring in 100 per cent FDI in local carriers. Under the new set-up, 49 per cent will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. "For NRIs, 100 per cent FDI will continue to be allowed under the automatic route," the release said.
"However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49 per cent of their paid-up capital and subject to the laid-down conditions in the existing policy."
However, maintaining the status quo, foreign airlines will be allowed to invest only up to 49 per cent in Indian carriers. The decision to relax FDI norms was taken at a meeting chaired by Prime Minister Narendra Modi here today.
Interestingly, a proposal to hike the FDI limit from 49 per cent in local airlines in the draft civil aviation policy did not find a place in the final document, which was approved by the Cabinet on June 15.
To Read the News in Full 20/06/16 PTI/New Indian Express
The announcement also comes against the backdrop of persisting concerns over ownership and control at local carriers where foreign players have a substantial stake. Now, 100 per cent foreign investment will be allowed in "scheduled air transport service/domestic scheduled passenger airline and regional air transport service", an official release said.
Only non-airline players will be allowed to bring in 100 per cent FDI in local carriers. Under the new set-up, 49 per cent will be through the automatic route and for anything beyond, government nod will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. "For NRIs, 100 per cent FDI will continue to be allowed under the automatic route," the release said.
"However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49 per cent of their paid-up capital and subject to the laid-down conditions in the existing policy."
However, maintaining the status quo, foreign airlines will be allowed to invest only up to 49 per cent in Indian carriers. The decision to relax FDI norms was taken at a meeting chaired by Prime Minister Narendra Modi here today.
Interestingly, a proposal to hike the FDI limit from 49 per cent in local airlines in the draft civil aviation policy did not find a place in the final document, which was approved by the Cabinet on June 15.
To Read the News in Full 20/06/16 PTI/New Indian Express
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