Cabinet to decide on PIO funds in aviation
In a bid to improve the investment climate for the aviation industry, the civil aviation ministry is planning to approach the Cabinet for a clear view on investments by persons of Indian origin.
By TNN |
NEW DELHI: In a bid to improve the investment climate for the aviation industry, the civil aviation ministry is planning to approach the Cabinet for a clear view on investments by persons of Indian origin (PIO).
The move assumes significance in view of the inter-ministerial consultations during the recent weeks on a proposal from Magic Airlines to launch domestic services with PIO investment. We will approach the Cabinet in a day or two, civil aviation secretary Ajay Prasad said today.
The department of economic affairs has already clarified that PIO investment was on par with NRI investment. According to the existing civil aviation policy, NRIs are allowed to invest 100% in the domestic airlines while foreign investment is allowed only to the extent of 49%.
The department of industrial policy & promotion is also of the view that PIO investment should be treated on the same lines as NRI investment.
���When the Cabinet decided on increase in FDI ceiling in aviation to 49% from the previous level of 40%, it was mentioned that PIO investment in the segment needs to be clarified. We are approaching the Cabinet now,��� Mr Prasad said.
The move assumes significance in view of the inter-ministerial consultations during the recent weeks on a proposal from Magic Airlines to launch domestic services with PIO investment. We will approach the Cabinet in a day or two, civil aviation secretary Ajay Prasad said today.
The department of economic affairs has already clarified that PIO investment was on par with NRI investment. According to the existing civil aviation policy, NRIs are allowed to invest 100% in the domestic airlines while foreign investment is allowed only to the extent of 49%.
The department of industrial policy & promotion is also of the view that PIO investment should be treated on the same lines as NRI investment.
���When the Cabinet decided on increase in FDI ceiling in aviation to 49% from the previous level of 40%, it was mentioned that PIO investment in the segment needs to be clarified. We are approaching the Cabinet now,��� Mr Prasad said.
Last week, civil aviation minister Praful Patel had said that the department of economic affairs should approach the Cabinet since the issue concerned was investment by PIOs. It is understood that the department put the ball back in civil aviation ministry���s court.
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