Many keen to invest in Kingfisher: Mallya

Kingfisher promoter Vijay Mallya on Friday said many have expressed interest in investing in his debt-ridden airline.

Much would, however, depend on the government's stand on allowing foreign carriers to pick up stake in domestic airlines, he told reporters after meeting Revenue Secretary R S Gujral in New Delhi.

India's foreign direct investment policy allows foreign investors to pick up 49 per cent stake in domestic airlines, but foreign airlines are not permitted.

Earlier this week in Bengaluru, Civil Aviation Minister Ajit Singh had said the government was looking at the proposal of allowing foreign airlines to invest in domestic carriers.

Kingfisher Airlines has run into a debt of Rs 7,500 crore (Rs 75 billion)

and has defaulted on tax payments.

The revenue department is even contemplating legal action against the carrier.

"I have been talking to people. . . Many people are interested. (they have) shown interest in investing in KFA but it all depends on government policies. We are waiting and watching," Mallya said.

He, however, said that he did not come to the Finance Ministry to discuss taxation issues.

"I have not come here to discuss tax matters with Revenue Secretary today. Tax matters are currently subjudice, being dealt legally," he said.

The banks, which had been talking tough on Kingfisher, want the airline promoters to bring in fresh equity as a pre-condition for restructuring loans.