| Date: |
12-12-2011 |
| Subject: |
26% FDI in Private Airlines gets Aviation Ministry Nod |
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NEW DELHI The Civil Aviation Ministry has agreed to the proposal of allowing foreign carriers to buy 26 per cent stake in private airlines, sources said.
Earlier the Aviation Ministry had proposed to fix a cap of 24 per cent on foreign direct investment (FDI) by overseas carriers.
“They (the Civil Aviation Ministry) have come on board for 26 per cent FDI,” a senior government official said.
He declined to divulge the details.
The Department of Industrial Policy and Promotion (DIPP) had proposed 26 per cent foreign direct investment by foreign airlines into the domestic industry, in the backdrop of private carrier Kingfisher Airlines slipping into a severe debt crisis and several others facing resource crunch.
The Home Ministry and the Planning Commission have already supported the draft cabinet note in this regard.
The finance ministry has also given the green signal to the proposal, with a rider that such investments should not violate Securities Exchange Board of India’s takeover code.
Source : omantribune.com
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