Its About FDI,Not Old or New Airline: Sharma

Commerce and Industry Minister Anand Sharma has said foreign direct investment (FDI) norms for the aviation sector do not make a distinction between existing and new airlines,brushing aside Civil Aviation Minister Ajit Singhs contention that the policy needs to be clarified.I dont want to get into what the civil aviation ministry's view is.But as per Press Note 6,the intent of the government is clear.We want to allow foreign airlines to invest in civil aviation,be it in existing air transport services or the capital of an Indian company.We are not talking greenfield or brownfield here.Its foreign investment by foreign airlines in the civil aviation sector, said Sharma.The aviation ministry had opposed the AirAsia-Tata proposal to launch new airlines at a meeting of the Foreign Investment Promotion Board (FIPB) earlier this week,on the grounds that foreign airlines were allowed to invest only in existing carriers.But this objection was over-ruled in the meeting,with officials of the finance ministry and Department of Industrial Policy and Promotion arguing that a strategically placed comma in the FDI rules made it clear that foreign airlines could be allowed to invest in Indian companies,and it was not necessary that these companies should have operational air transport services.After the FIPB meeting,Singh had said the commerce and industry ministry,which notifies foreign investment norms in the country,should amend the press note that lays down guidelines for FDI in aviation.The commerce ministry should change the note they issued the note, the aviation minister told reporters on Wednesday.
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