New Delhi, Mar 12 (UNI) The Government today notified the new FDI policy in the Civil Aviation sector, allowing foreign direct investment up to 74 per cent on the automatic route for non-scheduled airlines, charter airlines and cargo airlines.
However, there will be no direct or indirect participation by foreign carriers in non-scheduled airlines and charter airlines, but 100 per cent NRI investment would be allowed on the automatic route.
FDI up to 100 per cent will now be permitted on the automatic route for maintenance and repair organisations; flying training institutes; technical training institutions; and helicopter services and seaplane services, subject to DGCA approval.
For ground handling services, FDI up to 74 per cent and investment by NRIs up to 100 per cent will be allowed on the automatic route, subject to sectoral regulations and security clearance.
FDI in air transport services will continue to be capped at 49 per cent on the automatic route and 100 per cent for NRIs for scheduled airlines, subject to no direct or indirect participation by foreign airlines. This segment would be reclassified as Domestic Scheduled Passenger Airline Sector.
The New FDI policy will be subject to the Aircraft Rules, 1934 as amended from time to time, civil aviation requirements, and aeronatical information circulars as notified by the Civil Aviation Ministry, an official release said.
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