Lok Sabha Question No. 2674 (UNSTARRED), answered on 2016-12-01
Subject: FDI Policy for Aviation Sector
Ministry: CIVIL AVIATION
Asked by: JAYAKUMAR JAYAVARDHAN

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA UNSTARRED QUESTION NO. : 2674 (To be answered on the December 2016) 1st

## FDI POLICY FOR AVIATION SECTOR

## 2674. DR J. JAYAVARDHAN

Will the Minister of CIVIL AVIATION

be pleased to state:-

- (a) the Foreign Direct Investment (FDI) policy for civil aviation sector in general and airlines in particular;
- (c) if s0, the details thereof and if not, the reasons therefor;
- (b) whether the Government proposes to open FDI in airlines;
- (d) whether the Government has any proposal for formation of' an independent Civil Aviation Authority of india, if so, the details thereof; and (e) whether the Rs. 2,500 per hour under the Regional Connectivity Scheme
- be still valid, if the prices of Aviation Turbine Fuel prices rises and if so, the details thereof?

## ANSWER

Minister of State in the Ministry of CIVIL AVIATION

(Shri Jayant Sinha)

(a): The Government has recently i.e. June, 2016, has raised the FDI limit in Civil Aviation sector. The details of FDI Policy in the Civil Aviation sector including airlines is annexed at Annexure A

(d) No Madam:

(b) & (c): No such proposal is under consideration of Government, at present:

(e) Rs 2500 per hour is an indicative airfare indexed to inflation.

## 5.2.9 Civil Aviation

## 5.2.9.1 Airports

. .

.

| Sector/ Activity       | %/ of Equity / FDI Cap   | Route Entry   |
|------------------------|--------------------------|---------------|
| a) Greenfield projects | 100%/                    | Automatic     |
| (6) Existing projects  | 100%/                    | Automatic     |

## 5.2.9.2Air Transport Services

| Sector Activity                                                                                                  | % of Equity / FDI Cap   | Route Entry                                   |
|------------------------------------------------------------------------------------------------------------------|-------------------------|-----------------------------------------------|
| (1) () Scheduled Air 'Transport Service/ Domestic Scheduled Passenger Airline (6) Regional Air Transport Service | 100%                    | (Automatic up for NRIs) Government beyond 49/ |
| (2)Non-Scheduled Air Transport Service                                                                           | 100%/                   | Automatic                                     |
| (3)Helicopter seivices/ 'seaplane services requiring DGCA approval                                               | 100%/                   | Automatic                                     |

## 5.2.9.3 Other services under Civil Aviation sector

' . `

. .

| Sector Activity                                                                                          | % of Equity / FDI Cap   | Route Entry   |
|----------------------------------------------------------------------------------------------------------|-------------------------|---------------|
| (I)Ground Handling Services subject to sectoral regulations and security clearance                       | 100%/                   | Automatic     |
| (2)Maintenance and Repair organizations; flying training institutes; and technical training institutions | 100%/                   | Automatic     |

## Annexure-A