Government defers decision on FDI hike in civil aviation

Mumbai: The union cabinet has deferred a decision on raising foreign direct investment limit in the civil aviation sector, reports quoting information and broadcasting minister P R Dasmunsi said.

The cabinet was to take a policy decision on the civil aviation ministry's proposals to enhance the 49 per cent limit in non-scheduled airlines, chartered and cargo carriers to 74 per cent, without any direct or indirect participation of any foreign airline.

The ministry had also suggested that the FDI cap for ground handling services may be raised to 74 per cent through the automatic route and to 100 per cent for setting up maintenance, repair and overhaul (MRO) facilities and flying and technical training institutions, besides helicopter and sea-plane services.

India has already received firm proposals from aircraft manufacturers like Boeing and Airbus Industries to establish MRO facilities. The government also wants to make India an attractive MRO hub in the region.

The cabinet was also expected to approve a development project for the international airport and a national cargo hub at Nagpur and a modernisation project for the Kannur airport at the meeting, sources said.