| Political hurdles likely to delay FDI in Indian carriers further |
NEW DELHI The government may not be able to allow foreign airlines to buy stake in cash-starved domestic carriers in the near future as key UPA ally Trinamool Congress remains steadfast in opposing the move, highly placed sources said.
“Civil Aviation Minister Ajit Singh has held two meetings with TMC chief Mamata Banerjee to persuade her to give a go-ahead to the proposal. But, no consensus has yet been reached,” they said.
The proposal to allow foreign airlines to buy up to 49 per cent stake in domestic carriers originally mooted by the commerce and industry ministry, has received a green signal from the finance ministry and the aviation ministry. Although the Department of Industrial Policy and Promotion (DIPP) has sent a cabinet note on the matter, it was felt that TMC should be taken on board before the issue is taken to the Cabinet for consideration. Besides, as stated by civil aviation minister, there is not much enthusiasm among the foreign carriers to invest in the Indian airlines at this point of time. TMC chief and West Bengal Chief Minister had also forced the government to put on hold the decision to allow 51 per cent FDI in multi-brand retail sector.
Press Trust of India
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