Govt considers hiking FDI cap in select segments of civil aviation
05 February 2007New Delhi: The civil aviation ministry has proposed hiking FDI for helicopter and sea-plane operations, MRO services, charters and air-cargo and non-scheduled air operations.
The current FDI limit in the entire civil aviation sector is 49 per cent.
According to civil aviation minister Praful Patel, the ministry has moved a cabinet note proposing hiking FDI cap in different areas of the aviation sector to expand air connectivity across the country.
The ministry has mooted a 100-per cent FDI in helicopter and seaplane operations along with Maintenance, Repair and Overhaul (MRO) facilities.
For non-scheduled and cargo operations, the ministry has proposed raising the FDI cap to 74 per cent and may consider allowing foreign airlines to enter the air cargo sector Patel said.
He said the cap on foreign funds in domestic carriers would remain at 49 per cent and there was no proposal to allow foreign airlines to participate in this area.
he minister also said the government was "objectively considering" allowing 100 per cent private development of greenfield airports, provided the player could guarantee the land