Easy FDI norms likely for aviation, telecom and oil

NEW DELHI: In an endeavour to promote foreign investment in crucial areas of economy, the Union Cabinet is likely to approve liberalised foreign direct investment (FDI) norms in aviation, telecom, non-news print media and petroleum sectors.
Among other things, the Cabinet is expected to permit foreign airlines to pick up to 49 per cent equity in domestic carriers in tandem with raising the FDI ceiling in aviation sector from 40 to 49 per cent, sources said.
The proposals are largely based on the recommendations of the Group of Ministers (GOM) on FDI, chaired by Finance Minister Jaswant Singh, sent to the Cabinet a day before the presentation of the Union Budget for 2003-04 on February 28.
The GOM had recommended 100 per cent FDI in oil refineries and physical infrastructure in airports and 49 per cent FDI in airlines besides 100 per cent FDI in the non-news scientific and technical journals.
Accordingly, the Cabinet is also likely to consider enhancing the ceiling to 74 per cent in the telecom sector from 49 per cent at present.