Government drops plan to raise FDI in civil aviation to 74%

| Friday, June 10, 2016 - 16:09
First Published |
Government drops plan to raise FDI in civil aviation to 74%, Government, Civil Aviation, FDI

Govt: Civil Aviation FDI cap won't be raised

New Delhi: The aviation ministry has cancelled its plan to raise the foreign investment limit in Indian airlines to 74%. 
Presently, the foreign airlines are permitted to own up to 49% in a local airline. The proposal to raise the cap on foreign investment limit was part of the draft civil aviation policy. The proposal is currently awaiting the cabinet's approval.
The aviation policy was sent to the Union cabinet for its approval on Friday. The statement of deletion of the proposal to raise the foreign investment limit by 2020 was not present in the draft aviation policy that was sent earlier.
Tata group had launched Tata SIA Airlines Ltd with Singapore Airlines Ltd and low-cost airline AirAsia India along with Malaysia’s AirAsia Bhd following the The 2012 decision to allow foreign investment of up to 49% in airlines. Etihad Airways had also bought a 24% equity stake in Jet Airways (India) Ltd.

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