Plan to hike FDI in aviation sector

A proposal to hike foreign direct investment cap in helicopter and sea-plane operations, MRO facilities, charters, air-cargo and non-scheduled air operations has been moved by the civil aviation ministry for the Cabinet's consideration.

"We have moved a Cabinet note proposing hiking FDI cap in different areas of the aviation sector to expand the air connectivity across the country," Civil Aviation Minister Praful Patel told reporters in New Delhi.

The ministry has mooted 100 per cent FDI in helicopter and sea plane operations along with Maintenance, Repair and Overhaul facilities, he said.

"For non-scheduled and cargo operations, we have proposed raising the FDI cap to 74

per cent. We may also consider allowing foreign airlines participation in the air cargo sector," he added.

The current FDI limit in the entire civil aviation sector is 49 per cent. Patel said the cap on foreign funds in domestic carriers will remain at 49 per cent and there was no proposal to allow participation of foreign airlines in this area.

The minister also said the government was 'objectively considering' allowing 100 per cent private development of greenfield airports, provided the player could guarantee the land.