GOVERNMENT APPROVES FOLLOWING CHANGES IN FDI POLICY RELATED TO CIVIL AVIATION

The Government today has approved certain changes in the FDI permitted in civil aviation activities. 

· FDI in Air Transport services would continue to be capped at 49% on the automatic route and 100% for Non-resident Indians (NRI), subject to no direct or indirect participation by foreign airlines.  This segment would be reclassified as Domestic Scheduled Passenger Airline Sector. 

· FDI up to 74% may be permitted on the automatic route for Non Scheduled airlines, Chartered airlines and Cargo airlines.  No direct or indirect participation by foreign airlines would be allowed in non-scheduled airlines and chartered airlines.  NRI investment would be allowed up to 100% on the automatic route.

· FDI up to 74% may be permitted on the automatic route for Ground handling Services subject to sectoral regulations and security clearance.  NRI investment would be allowed up to 100% on the automatic route.

FDI up to 100% may be permitted on the automatic route for Maintenance   

and Repair organizations; flying training institutes; technical training institutions; and helicopter services/seaplane services in the aviation sector requiring DGCA approval.