Front Page
Equity for foreign airlines planned
By Gargi Parsai
NEW DELHI, DEC. 7. In a major policy shift, the Government is planning to allow foreign airlines to pick up equity in the domestic sector and to go in for technical tie-up with domestic airlines.
The Government is also considering a proposal to raise the Foreign Direct Investment cap in the civil aviation sector - both domestic and international - from the present 26 to 49 per cent.
These proposals were finalised today at a meeting between the Planning Commission and the Ministry of Civil Aviation to finalise the draft of the Comprehensive Civil Aviation Policy.
The proposals would be put up to the Union Cabinet for approval by January, 2002.
The meeting was chaired by Mr. K.C. Pant and attended by the Minister for Civil Aviation, Mr. Shahnawaz Hussain, and senior officials. A Group of Ministers which considered the draft Civil Aviation Policy earlier had approved foreign airlines to pick up equity stake up to 26 per cent in the domestic sector.
The meeting also considered the leasing out of international airports at four metros and suggested that the rules under the Airports Authority of India Act be amended suitably for the purpose.
The question of setting up a Regulatory Authority and creating a Civil Aviation Fund were also discussed, sources said.
The proposal to allow foreign airlines to put in equity in the domestic sector comes in rather late when the Tata- Singapore Airlines consortium has been forced to withdraw its proposal, first from the domestic sector and now from holding stake in Air India.
Send this article to Friends by
E-Mail
Front Page
|
