DIPP to raise FDI in civil aviation space

NEW DELHI: The department of industrial policy and promotion (DIPP) would soon give its go-ahead for raising foreign direct investment (FDI) from the existing 49% to 74% in helicopter services, non-scheduled aircrafts and regional airlines.

The finance ministry has approved the proposal of the civil aviation ministry and the policy change is expected to be announced next year.

“The civil aviation ministry’s proposal for FDI hike in these services is well grounded as the government is allowing higher FDI in scheduled domestic airlines. However, it would not be part of this year’s review but may be announced next year. This increase would help greater connectivity among small and remote sectors,” sources in DIPP said.

The civil aviation ministry is of the view that an upward shift in FDI cap would significantly boost feeder airline business which is at present being given short shrift.

The civil aviation policy, which is under cabinet consideration, has proposed a need to open up areas like non-scheduled operations and helicopters services.