The Working Group on Civil Aviation (WGCA) comprising secretaries of various ministries has proposed raising the foreign direct investment (FDI) limit to 49%.
The members of the WGCA told the civil aviation secretary, who heads the group, that a 49 % stake sale would be far more attractive to foreign carriers than the 26% coming into effect. The WGCA comprises secretaries of the ministries of civil aviation, petroleum and banking, as well as the Director General of Foreign Trade (DGFT), which functions under the commerce ministry.
The ministry of civil aviation has in principle agreed to the hike in FDI limit to 49%. The earlier draft Cabinet note had put the cap on FDI by foreign airlines at 26% against 24% planned originally by the civil aviation ministry.
A top official said DIPP, which functions under the commerce ministry may rework on the draft Cabinet note to allow 49% stake sale to foreign carriers in Indian airline companies.
Watch this space.