Decision on aviation FDI deferred for next cabinet meetApril 12th, 2012 - 9:40 pm ICT by IANS
New Delhi, April 12 (IANS) A key decision on foreign carriers picking up stake in domestic airlines was deferred Thursday at a meeting of the cabinet presided over by Prime Minister Manmohan Singh.
“The matter has been deferred. It will come up in the next cabinet meet,” Civil Aviation Minister Ajit Singh told reporters here.
Ajit Singh, who was among those present at the meeting, said foreign direct investment (FDI) by foreign carriers will have to go through the government’s approval route if and when a decision is taken on the matter.
“The FDI has to abide by the rules which have been set where two-thirds of the board members should be Indian. The management has to be Indianised,” Singh said.
Official sources said some ministers wanted more clarity on the issue.
Currently, the government allows FDI up to 49 percent in Indian carriers by non-airline players but bans foreign airlines from directly investing for security concerns.
But some industry insiders have been supporting the move which they say will help the bleeding sector where three listed players - Jet, Kingfisher and SpiceJet - have reported heavy third quarter losses.
Share prices of aviation companies rallied Wednesday, expecting a favourable decision.
- Aviation stocks rally on CCEA meet clearing FDI in airlines - Sep 14, 2012
- 'Proposal for FDI in domestic carriers sent to commerce ministry' - Feb 23, 2012
- Focus on rationalising sales tax on ATF: CII - Feb 05, 2012
- FDI in airlines allowed, foreign airlines welcome move - Sep 14, 2012
- Government to pay Rs.150 crore dues to help Air India - Jan 17, 2012
- Cabinet may consider FDI by foreign airlines before budget - Jan 31, 2012
- FDI in aviation may give flight to domestic airlines - Jan 22, 2012
- FDI reform lifted mood in aviation industry: Ajit Singh - Sep 21, 2012
- 24 percent cap on FDI by international airlines proposed - Nov 17, 2011
- PM to meet airline chiefs Saturday (Lead) - Nov 25, 2011
- FDI in aviation boosts airlines' stocks - Sep 17, 2012
- PM to meet airlines chiefs Saturday - Nov 25, 2011
- GoM to look into foreign capital in domestic airlines - Jan 13, 2012
- PM holds discussions with private airline chiefs - Nov 26, 2011
- Budget allows airlines to access foreign funds (Second Lead) - Mar 16, 2012
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