Cabinet to consider FDI in aviation, broadcast sectors

NEW DELHI: Notwithstanding resistance by allies, government is determined to push economic reforms with the Cabinet set to take up tomorrow proposals for allowing FDI in aviation and trading exchanges besides raising its cap to 74 per cent in various segments of broadcast sector.

The Cabinet will also consider a proposal for disinvestment in seven PSUs, including National Aluminium Limited Company (NALCO), Steel Authority of India Limited (SAIL) and Mines and Minerals Trading Corporation (MMTC), to the tune of Rs 15,000 crore.

Sources said the Cabinet will take up a proposal for allowing foreign airlines to pick up stakes in Indian carriers, a long-pending demand of the domestic industry to give a boost to the sector.

At present, India allows foreign investors, not related to airline business, to buy up to 49 percent stake in domestic airlines but foreign carriers are not permitted to invest.

The government had initiated the process in January but key UPA constituent Trinamool Congress was opposed to it.

Cash-strapped Kingfisher Airlines, which is burdened with a debt of over Rs 7,000 crore, has been in the forefront of pushing for permission to allow foreign airlines to invest.

Among other proposals slated for consideration tomorrow is the one on raising the cap of FDI to 74 per cent in broadcast sector across the board.

The Department of Industrial Policy and Promotion (DIPP) has proposed that FDI limit in the broadcast carriage services providers, including Direct-to-Home, Head-end in the Sky (HITS) and cable TV must be uniform.

HITS is a satellite multiplex service that provides TV channels for cable operations.

At present, 49 per cent FDI is allowed in cable TV and DTH while it is 74 per cent in HITS.