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Government not to raise foreign equity limit in aviation

The government on Tuesday said there was no proposal to allow foreign investors to take majority stake in the aviation sector.

Civil Aviation Minister Sharad Yadav told the Rajya Sabha in a written reply that there was no proposal to allow foreign investors to raise their equity stake beyond the present limit of 40 per cent.

New Delhi had recently concluded an agreement with Moscow to harmonise the aviation systems and standards followed by the two countries and also to reduce economic burden imposed on the industry by redundant inspections, evaluations and testing, he said.

Yadav said a new surveillance CCTV system with provision of a common control room for customs, immigration, security and Airports authority was likely to be commissioned at all four major international airports in the country by July this year.

The ministry was examining allegations that Air India's general sales agent in London, Welcome Travels had benefited by Rs 30 million in the year 1997-98 through revision of slabs of productivity linked incentive.

He said a preliminary report on these allegations had been received from Air India and was now being examined by his ministry.

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