Govt plans 100% FDI in airports
Government is actively considering allowing 100 per cent foreign direct investment (FDI) in airports through the automatic route, doing away with the FIPB clearances.
By PTI |
NEW DELHI: Government is actively considering allowing 100 per cent foreign direct investment (FDI) in airports through the automatic route, doing away with the FIPB clearances.
The Commerce Ministry has suggested a slew of FDI policy changes and the Group of Ministers headed by Agriculture Minister Sharad Pawar is evaluating the pros and cons before allowing 100 per cent foreign participation in development of airportrs through the automatic route.
Currently 100 per cent foreign participation in the sector is allowed but there is a sectoral cap of 74 per cent. If the foreign company wants to invest more than 74 per cent it has to apply for FIPB approval.
The Commerce Ministry wants this to be simplified by doing away with the FIPB route, as the activities in the airports sector are regulated by the Civil Aviation ministry and the DGCA, official sources said.
The move would give a boost to the proposed upgradation and modernisation programme announced by the aviation ministry for 35 non-metro airports and the greenfield airports to be set up in consultation with the states.
The Commerce Ministry has suggested a slew of FDI policy changes and the Group of Ministers headed by Agriculture Minister Sharad Pawar is evaluating the pros and cons before allowing 100 per cent foreign participation in development of airportrs through the automatic route.
Currently 100 per cent foreign participation in the sector is allowed but there is a sectoral cap of 74 per cent. If the foreign company wants to invest more than 74 per cent it has to apply for FIPB approval.
The Commerce Ministry wants this to be simplified by doing away with the FIPB route, as the activities in the airports sector are regulated by the Civil Aviation ministry and the DGCA, official sources said.
The move would give a boost to the proposed upgradation and modernisation programme announced by the aviation ministry for 35 non-metro airports and the greenfield airports to be set up in consultation with the states.
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