FDI in domestic airlines may soar up

The government is considering a proposal to increase the foreign direct investment (FDI) limit in scheduled domestic carriers to 74% from 49%. The idea is being mooted to increase the funding options for domestic airlines, that have drawn up huge expansion plans. Domestic carriers are expected to buy close to 480 aircraft in five years involving an investment of $30 billion.

“The government may hike the FDI cap to facilitate funding options for airline companies,” a senior official in the civil aviation ministry said. The idea of hiking FDI in domestic carriers has been doing the rounds for quite some time, but the government now seems to have reached a broad consensus on the issue, he added. A review panel set up by the civil aviation ministry would suggest detailed policy changes in this regard early next year.

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