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selecta · Member Joined: 24 Dec 2006 Posts: 813 Location: ORD

Pranab Dhal Samanta
The Indian Express
Posted online: Sunday, February 04, 2007 at 0000 hrs IST
source

NEW DELHI i FEBRUARY 3
Setting the stage for the next phase of reforms in aviation, the Civil Aviation Ministry sent a note on Friday asking the government to revise the 49-per-cent sectoral cap on FDI.

The Ministry wants the government to allow 100 per cent FDI for seaplanes, helicopters and for setting up maintenance, repair and overhaul (MRO) facilities and raising the cap to 74 per cent for cargo operations, charters and other non-scheduled operations.

Currently, the FDI cap is 49 per cent for the aviation sector except for greenfield airports.

The Ministry, however, has not proposed increasing FDI for commercial airlines on grounds that the domestic airlines still need some more time to grow. If these changes take places, sources said, one cannot rule out a change in FDI for airlines too in the near future.

Despite its long coastline, there is not a single seaplane, which can take off from and land on water, in the country. This is one area where the Ministry feels India desperately needs FDI so that seaplanes can be introduced in a big way not only for tourism, but also to reach essential services and medical aid during floods and other emergency situations. The same logic applies for choppers.

Similarly, cargo operations have not taken off in India. With plans afoot to set up specialised cargo hubs in places like Nagpur, officials say, FDI in this area has become vital.

Last week also saw the Ministry giving its nod for the first-ever private airstrip in a Special Economic Zone at Mundra, Gujarat, promoted by the Adani group. While the airstrip cannot be run on a commercial basis, it allows air connectivity for private aircraft used for business purposes in the SEZ. Nod for a private airstrip in Koppal, Karnataka, is also on the cards.

“We welcome private players coming up and building airstrips without government help,” Civil Aviation Minister Praful Patel told The Sunday Express indicating that these were steps towards allowing private commercial airports to come up in the country. The Ministry is said to be working on such a proposal.
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