NEW DELHI (PTI): The Union Cabinet has cleared the proposal for foreign equity investment in Indian aviation companies up to a maximum of 40%.
The Cabinet has, however, maintained that the clearance of direct equity investment will be allowed Onacasc10Case basis. It has withheld blanket permission for such investments.
This will thus pave the way for direct foreign investment in some of the Indian air taxi com panics by International airlines, Earlier, Jetair, one of the more successful of the air taxi companies, had applied to the center for permission to allow two Intemational Airlines to pick up equity stake in its. Jetair has proposed that Gulf Air and Kuwait Airwayscach should be allowed (o acquire 20% stake in its overseas percent body.
This; at the same time, creates some anomalies since the govemment has yet to repeal the air corporations act, which reserved scheduled airline services for the public sector.
Article extracted from this publication >> September 10, 1993
