The Indian government may allow overseas airlines to buy up to 49% equity in Indian airlines, especially when the domestic aviation industry is deep in the red, say media reports.
The proposal is likely to be tabled before the meeting of the Committee of Secretaries, chaired by Cabinet Secretary K.M. Chandrasekhar, on November 17.
Presently, the government allows direct investment of 49% by foreign airline in domestic carriers, but prevents them from holding any stake either directly or indirectly.
The civil aviation ministry early this year allowed some foreign carriers to invest 25% in domestic airlines, but kept it at less than 26% to prevent them from taking a control over the management. However, the Department of Industrial Policy and Promotion suggested that foreign airlines be permitted to buy up to 49% of the stake.
Officials said though the National Aviation Company of India Ltd. of Air India came under the purview of this proposal, there were no plans to either sell the government stake in the national carrier or induct a foreign partner.
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