FDI cap in some aviation activities to be raised: Patel

New Delhi, Feb 5 (UNI) The air transport industry is set to open up further for Indian and foreign investors.

The civil aviation ministry has recommended allowing 100 per cent foreign direct investment (FDI) in helicopter and seaplane services besides maintenance, repair and overhaul (MRO) operations of bigger aircraft.

A cabinet note has been prepared and will be circulated shortly.

Civil aviation minister Praful Patel has also recommended 74 per cent FDI for cargo operations and non-scheduled operators like charters, up from 49 per cent at present.

In cargo operations, foreign airlines could be allowed to pick up equity stake. But the ban foreign airlines to invest in Indian carriers is likely to continue.

''Aviation will be sunrise sector of the future with potential to add five million new jobs,'' said Mr Patel. ''The industry will require 50 billion to 70 billion dollars of investments in the next 10 years,'' the minister added.

He was addressing a two-day international conference titled ''Meeting India's Infrastructure Needs with Public Private Partnerships: the International Experience and Perspective.'' With 250 aircraft, the sector currently employs 250,000 lakh people. ''Aviation is a great economic multiplier,'' said Mr Patel.

''The time has come to let India have its full benefits,'' he added.

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