Retail boom to boost air cargo business: Patel

New Delhi, Apr 23: The boom in organised retail sector is likely to boost air cargo business across the country, civil aviation minister Praful Patel said today.

With a wide geography and rich diversity, he said, India is as big as a continent. ''The economy is growing rapidly and we're laying down a clear vision statement for creation of a national grid with aviation infrastructure. In this, the cargo segment must realise its fullest potential,'' he said.

Mr Patel was addressing delegates who gathered here for a three-day US-India Aviation Partnership Summit.

The government is also looking at raising the limit for foreign direct investment (FDI) in air cargo sector from 49 to 74 per cent, said the minister.

''We are deliberating on the matter. While we have an overall FDI cap of 49 per cent in the aviation sector, we have to liberalise areas like air cargo, helicopters and sea-planes and the cap could reasonably put at 74 per cent.'' At present, the Airports Authority of India (AAI) handles international cargo at four metro airports, Delhi, Mumbai, Chennai and Kolkata, and at four non-metro airports, Nagpur, Guwahati, Lucknow and Coimbatore.

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.

UNI