FDI in Aviation Sector




FDI in Aviation Sector 

The Government has permitted different limits of Foreign Direct Investment for different services in aviation sector. The following Airlines have been granted permission by Foreign Investment Promotion Board (FIPB) to have joint Venture with foreign Airlines:- 


1. Jet Airways with Etihad Airways (foreign airline). 

2. Air Asia (India) Pvt. Ltd is joint venture of three Companies i.e. TATA Sons Ltd, Air Asia Berhad (foreign Airline) and Telestra Tradeplace Pvt. Ltd. 

3. TATA-SIA Airlines Ltd is joint venture of TATA Sons and Singapore Airlines (foreign airlines). 

The above three Airlines are operational at present. 

The Government has issued Aeronautical Information Circular (AIC) 12/2013 on Guidelines for foreign direct investment in aviation sector, which also includes pre-conditions for such investments and the same are available in public domain. 

This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Lok Sabha today. 

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Airport Projects 

There are a total number of 476 airports in the country. This includes operational and non-operational airports, airstrips etc. owned by the Airports Authority of India, Defence, State Governments, private parties etc. 

Government of India (GoI) has granted 'in-principle' approval for setting up of the following 14 Greenfield airports in the country with estimated project cost (approx.) as given under: 

Mopa in Goa (Rs.3000 cr), Navi Mumbai (Rs.15149 cr), Sindhudurg (Rs.350 cr) and Shirdi (Rs.320.54 cr for Phase I) in Maharashtra, Bijapur (Rs. 150 cr), Gulbarga (Rs.13.78 cr in initial phase), Hassan (apprx. 793.95 cr in three phases) and Shimoga (Rs.38.91 cr in initial phase) in Karnataka, Kannur (Rs.1892 cr) in Kerala, Dabra (Rs.200 cr) in Gwalior, Pakyong (Rs. 605.59 cr) in Sikkim, Kushinagar(Rs.600.39 cr) in Uttar Pradesh, cost estimated by Airports Authority of India, as the development of the airport through Public Private Partnership (PPP) could not be realized by the Government of Uttar Pradesh (GoUP), Karaikal (Rs. 280 cr) in Pudducherry and Durgapur (Rs. 700 cr) in West Bengal. Out of these, one project namely Durgapur Airport has commenced commercial operations on 18th May, 2015. 

Since 2012, GoI has received initial proposals for setting up of Greenfield airports at several places, namely, Karwar in Karnataka, Androth (Karavati dist.) in Union Territory of Lakshadweep, Taj International Airport, Hirangaon in Uttar Pradesh, Dagadarthi Mendal Nellore Dist., Bhogapuram in Vizianagaram District near Visakhapatnam, Tadepalligudem in West Godavari District, Oravakallu in Kurnool District and Kuppam in Chittoor District in Andhra Pradesh. As per Greenfield Airports Policy, 2008, Ministry of Defence, Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI) was consulted for these proposals. The proposal of Government of Uttar Pradesh for setting up of Greenfield airport at Hirangaon was examined in consultation with the nodal agencies and M/o Defence did not recommend the project. Grant of Site clearance to these projects depends upon recommendations from M/o Defence, AAI, DGCA and the concerned State Government. 

Necessary action for approval from various departments, project development, including financing of the airport project is taken by the respective airport promoter. The timeline for construction of airport projects depends upon many factors such as land acquisition, availability of mandatory clearances, financial closure, etc. by the individual operator. 

This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Lok Sabha today. 

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Revamp of BCAS 

The Ministry of Civil Aviation had engaged an expert team of International Civil Aviation Organisation (ICAO) in 2011 for making suggestions for restructuring of Bureau of Civil Aviation Security (BCAS) and for sufficient operational infrastructure for aviation security. On the basis of the recommendation of the said expert team, Ministry of Civil Aviation has already worked out the requirement of manpower in BCAS. 

The strengthening of BCAS is expected to ensure presence of the regulatory authority (for civil aviation security in the country) at all airports, which will enable better functioning at field level leading to better security oversight and quality control of civil aviation security in the country. 

This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Lok Sabha today. 

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Upgradation of Leh Airport 

Leh Airport belongs to Indian Air Force (IAF), Ministry of Defence and the Airports Authority of India (AAI) maintains a Civil Enclave for Civil Operations. AAI has proposed to construct a new Terminal Building to cater for 600 peak hour passengers for which 11.8 acres of land has been requisitioned from IAF. 

In the draft Civil Aviation Policy formulated by the Government, it is proposed to promote the six metro airports at Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad as international hubs to serve as the main access points for international travel to and from India, as this is essential for developing domestic civil aviation. 

This information was given by Minister of State for Civil Aviation, Dr. Mahesh Sharma in a written reply to a question in the Lok Sabha today. 

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FDI in Aviation Sector FDI in Aviation Sector Reviewed by Ajit Kumar on 9:48 AM Rating: 5

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