To boost liberalisation in the ailing Indian civil aviation sector, India's high-powered Narendra Committee has recommended that the government allow 49% foreign direct investment in domestic airlines,writes Shyam Ravindran.
This investment will enable international helicopter companies, financial investors and air- line groups to make investments in the Indian aviation sector.
Indian civil aviation minister Rudy Pratap says the foreign investment proposal will attract a host of potential investors.
The Narendra Committee report recommends private airlines should be permitted to oper- ate on international routes, thereby ending the monopoly of state- run Air India and Indian Airlines.
The committee suggests the delinking of the fleet acquisition plans of Air India and Indian Airlines for the divestment process and recommends infusion of equity to enable them to compete in the domestic and global market.
The committee recommends allowing 100% foreign investment in the helicopter operations sector.
Source: Flight International
