Decision on raising FDI cap in civil aviation deferred

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New Delhi, Jan 17 (UNI) The Government today put off a decision on raising the cap on foreign direct investment (FDI) in the civil aviation sector.

''The decision has been deferred,'' Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters when asked whether the Union Cabinet had considered the Civil Aviation Ministry's proposal in this regard.

The Cabinet was to take a policy decision on raising 49 per cent FDI limit to 74 per cent in non-scheduled airlines, chartered and cargo carriers, without any direct or indirect participation of any foreign airline.

The Ministry had also proposed raising the FDI cap to 74 per cent for ground handling services through the automatic route and to 100 per cent for establishing maintenance, repair and overhaul (MRO) facilities and flying and technical training institutions.

The Government wants to make India an attractive MRO hub, a move that has the support of aircraft manufacturers such as Boeing and Airbus Industries.

The Ministry had also proposed raising the cap to 100 per cent in helicopter and sea-plane services, which would help not only in connecting far-flung and hilly areas, but also in providing medical emergencies.


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