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Part C : RBI/FEMA
Given below are the highlights of 6 Press Notes issued by the
Ministry of Commerce & Industry.
19 Press Note No. 4 (2008), dated 12-3-2008.
— FDI Policy for the Civil Aviation Sector.
The guidelines for Foreign Direct Investment (FDI) in Civil
Aviation sector are :
Airports :
(a) Greenfield projects — FDI up to 100% is permitted under
the automatic route.
(b) Existing projects — FDI up to 100% is allowed. However,
investment beyond 74% will require FIPB approval.
Air Transport Services :
(a) Scheduled Air Transport Service/Domestic Scheduled
Passenger Airline — FDI up to 49% and investments by Non-Resident Indians (NRI)
up to 100% under the automatic route. However, foreign airlines cannot make
any investment, direct or indirect.
(b) Non-Scheduled Air Transport Service/Non-Scheduled
Airlines & Chartered Airlines — FDI up to 74% and investments by NRI up to
100% under the automatic route. However, foreign airlines cannot make any
investment, direct or indirect.
(c) Cargo Airlines — FDI up to 74% and investments by NRI
up to 100% under the automatic route.
(d) Helicopter Services/Seaplane Services requiring DGCA
approval — FDI up to 100% allowed under the automatic route.
Civil Aviation Sector :
(a) Ground Handling Services — FDI up to 74% and
investments by NRI up to 100% under the automatic route. This is subject to
sectoral regulations and security clearances.
(b) Maintenance and Repair organisations, flying training
institutes and technical training institutions — FDI up to 100% allowed under
the automatic route.
FDI policy Annexed to Press Note No. 4 (2006), dated
10-2-2006 stands modified to the extent stated above.
