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Foreign airlines will be allowed to take equity in Air India under the proposed new Foreign Direct Investment (FDI) policy for airlines. The Cabinet is expected to take a call on the revised policy soon, for which inter-ministerial consultations have already been completed.
The proposed policy, once approved, will allow foreign airlines to also pick up equity in Indian carriers. The limit for FDI, however, would remain at 49 per cent. Currently, FDI is allowed up to 49 per cent in aviation, provided the investor is not another airline. The Civil Aviation Minister, Mr Ajit Singh, said, “There will be all kinds of safeguards under the revised policy. It includes two-thirds of the Board should be Indian, the control should be in hands of an Indian. The Government will formulate route disbursal guidelines.”
Talking specifically about Air India, he said it depends upon eligible suitors. But the Government will remain the owner. FDI will be permitted under existing guidelines and the Home Ministry will examine the proposal on a case-to-case basis for Air India and also other airlines.
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