In take-off bid,govt mulls FDI in aviation by foreign airlines

Replying to questions after the 75-minute meeting,Singh said,8221;The question was to allow foreign airlines to participate in FDI. I discussed it with the Finance Minister and he has agreed. We will bring out a note for the Cabinet now.8221;

Allowing foreign airlines to pick up stake in Indian carriers would mark a major policy shift. Earlier foreign airlines were not allowed to invest in Indian airlines though foreign direct investment was allowed.

Asked about the FDI cap on foreign airlines,he said,8221;49 per cent FDI is already in place. The question was to allow international airlines to participate in the FDI. The CoS Committee of Secretaries has also recommended that FDI limit should be raised to 49 per cent.8221;

Singh said FDI was one of the factors which would help the industry to survive the current financial crisis. 8220;We all know that the aviation industry is under a lot of stress.8221;

On Air India,Singh said Rs 150 crore would be 8220;released soon8221; to the ailing national carrier.

Noting that Air India pilots had recently gone on an agitation,he said,8221;The government has decided to release sufficient funds to pay at least some part of their wages and PLI productivity-linked incentives.8221;