Left okay with aviation FDI hike

NEW DELHI: CPI-M on Wednesday said it has no objection to Wednesday’s Cabinet decision on raising FDI cap to 49 per cent in domestic private airlines but the party''s concerns still remain in other areas of the civil aviation sector.

"There is hardly any objection because the Cabinet has decided to increase the FDI cap from 40 per cent to 49 per cent in domestic private airlines only," CPI-M politburo member Sitaram Yechury told reporters here.

He said there was nothing amiss in the decision since the management control still rests with the domestic airline companies as there is hardly any difference between 40 and 49 per cent.

The decision to hike the FDI cap in domestic private airlines was discussed with the Left parties to which they had no objection.

However, Yechury said the Left had expressed reservations on other aspects of civil aviation, including allowing foreign airlines pick up stake in domestic airlines and privatisation of airports. The matter is still under discussion with the UPA government.