New Delhi: Moving ahead with the reforms, Government on Thursday notified the Cabinet's decision to allow foreign airlines to pick up upto 49 percent stake in private Indian carriers.
"The Government of India has reviewed the position in this regard and decided to permit foreign airlines also to invest in capital of Indian companies operating scheduled and non-scheduled air transport services up to the limit of 49 percent of their paid up capital," the notification said.
This would now pave the way for much-needed equity infusion into Indian carriers which are in dire need of funds for operations.
The Cabinet Committee on Economic Affairs, last week, had allowed foreign airlines to invest in scheduled and non-scheduled air transport services. The move is aimed at boosting the cash-strapped aviation sector.
The investments would be made under the government approval route and the parties need to comply with regulations of Securities and Exchange Board of India, like issue of Capital and Discloser Requirement and Substantial Acquisition of Shares and Takeovers Regulations, as well as other applicable rules and regulations, the notification said.
Earlier, no foreign airlines were allowed to invest in Indian carriers directly or indirectly.
First Published: Thursday, September 20, 2012, 21:45