Mallya tensed, will India allow above 49% FDI in aviation?

New Delhi, Apr 12: Thursday, Apr 12 is going to be a crucial day for Vijay Mallya and many others who are currently running huge cash-starved and debt-laden aviation business in India. Indian government is likely to take its vital decision on allowing more than 49 percent FDI in the aviation sector in the country.

The finance ministry led by Mr Pranab Mukherjee and aviation ministry led by Mr Ajit Singh have already agreed to allow foreign carriers to invest up to 49 per cent in local carriers. However, the government is yet to announce its decision about domestic carriers.

The aviation ministry in its recommendation to the Department of Industrial Policy and Promotion (DIPP) said that two third of the board members should be Indians and Indians should be responsible for the effective control in the aviation sector.

Vijay Mallya on Wednesday met Commerce Minister Anand Sharma but did not disclose the details of the meeting. However, while leaving Mr Sharma's office, Mallya said, "I am neither the government nor the policy maker. The FM has made a statement about FDI in Budget speech. I read about 49% FDI in aviation in the newspaper yesterday."

OneIndia News