A proposal to hike FDI cap in helicopter and sea-plane operations, charters has been moved by the Civil Aviation Ministry.
NEW DELHI: A proposal to hike FDI cap in helicopter and sea-plane operations, MRO facilities, charters, air-cargo and non-scheduled air operations has been moved by the Civil Aviation Ministry for the Union Cabinet's consideration.
"We have moved a Cabinet note proposing hiking FDI cap in different areas of the aviation sector to expand the air connectivity across the country," Civil Aviation Minister Praful Patel told reporters.
He said the ministry has mooted 100 per cent FDI in helicopter and sea plane operations along with Maintenance, Repair and Overhaul (MRO) facilities.
"For non-scheduled and cargo operations, we have proposed raising the FDI cap to 74 per cent. We may also consider allowing foreign airlines participation in the air cargo sector," he added.
The current FDI limit in the entire civil aviation sector is 49 per cent.
Patel said the cap on foreign funds in domestic carriers will remain at 49 per cent and there was no proposal to allow participation of foreign airlines in this area.
The minister also said the government was 'objectively considering' allowing 100 per cent private development of greenfield airports, provided the player could guarantee the land.
On the infrastructure side, the civil aviation ministry is inclined towards public private partnership (PPP) model. Patel is also thinking of merchant greenfield airports -- even with foreign participation.
"If someone has the ability to take risk and develop private airports, we'll look at it in a positive way. But, of course, there can't be another airport within five miles or so of an existing one," he said.
Large tracts of land are required to build runways and aircraft parking bays. This requires smoothening of land acquisition laws.
After privatising Delhi and Mumbai airports, the government is modernising and upgrading four airports in metro cities and 35 in non-metro cities with PPP model. Still, there are 300 plus air strips, some of them with defence forces, which can be developed into airports.
Patel said the civil aviation ministry will be open to the idea of private sector bidding for a block of these airstrips. This will boost regional connectivity and offer a range of opportunities to private players.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}