Officials in the Civil Aviation Ministry told Deccan Herald on Saturday that they were expecting the minutes of Friday’s meeting of the Cabinet Committee on Economic Affairs, which approved 49 per cent FDI in Indian carriers, by next week. The ministry will then frame the rules, which will have to be approved by the Law and Finance ministries.
According to the approved policy, the airlines getting foreign funding will be required have Indian citizens as CEO and MD while three-fourth of the directors should be Indians.
Considering security issues, the proposals will be vetted by the Foreign Investment Promotion Board. Besides, the joint venture company will have to be registered in India, doing its major business within the country.
However, high price of jet fuel and airport charges could be a dampener for the foreign airlines keen to enter the Indian market.
Foreign airlines like the Emirates, Singapore Airlines, Etihad, Lufthansa, Virgin Atlantic and Cathay Pacific may be among the carriers interested in investing in India.