The government give reprieve for a major demand of the cash-strapped aviation industry, the
government today said it would soon launch the process to allow foreign
airlines 49 per cent stake in Indian carriers.
Civil Aviation Minister Ajit Singh said FDI was one of the factors which would help the industry to survive the current financial crisis.Civil Aviation Minister Ajit Singh today said that government has decided to immediately release 150 crore rupees for payment of portion of pending salaries and allowances to Air India employees, including pilots. Mr Singh today met Finance Minister Pranab Mukherjee over this issue in New Delhi. Talking to reporters at the end of the meeting, he said a Group of Ministers will be soon constituted to look into the restructuring plan for the public carrier.
Mr Singh said that a Cabinet note will be prepared on allowing foreign airlines to take up to 49 per cent stake in the Indian carrier. He said that FDI is one of the options to help survive the Aviation industry. Regarding the airlines' demand to allow direct import of jet fuel, the Minister said a Committee of Secretaries has recommended that direct import may be allowed. In that case, the airline companies would not have to pay sales tax. The issue would also be placed before the GoM. Besides the two Ministers, the meeting was also attended by top officers of other Ministries, banks and the Reserve Bank of India.
Civil Aviation Minister Ajit Singh said FDI was one of the factors which would help the industry to survive the current financial crisis.Civil Aviation Minister Ajit Singh today said that government has decided to immediately release 150 crore rupees for payment of portion of pending salaries and allowances to Air India employees, including pilots. Mr Singh today met Finance Minister Pranab Mukherjee over this issue in New Delhi. Talking to reporters at the end of the meeting, he said a Group of Ministers will be soon constituted to look into the restructuring plan for the public carrier.
Mr Singh said that a Cabinet note will be prepared on allowing foreign airlines to take up to 49 per cent stake in the Indian carrier. He said that FDI is one of the options to help survive the Aviation industry. Regarding the airlines' demand to allow direct import of jet fuel, the Minister said a Committee of Secretaries has recommended that direct import may be allowed. In that case, the airline companies would not have to pay sales tax. The issue would also be placed before the GoM. Besides the two Ministers, the meeting was also attended by top officers of other Ministries, banks and the Reserve Bank of India.
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