The Cabinet may take decision to allow 49% FDI in domestic air-line companies shortly, it is reported. The FDI will be applicable to government owned Air India also. The present financial crisis in Air-India is being utilised by the government to disinvest as also bring in FDI, which is against the interest of the nation.
The Department of Industrial Policy and Promotions (DIPP) has put up a draft note for inter-ministerial consultation on FDI by foreign airlines.
Though the DIPP note talks about only 26 per cent FDI, “a Committee of Secretaries has favoured higher FDI and we will work accordingly,” it is stated.
Virgin Atlantic, Emirates,Singapore Airlines etc may take this opportunity.
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