Lok Sabha Question No. 461 (STARRED), answered on 2017-04-06
Subject: Operations of Foreign Airlines under Regional Connectivity Scheme
Ministry: CIVIL AVIATION
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT  OF INDIA MINISTRY  OF CIVIL AVIATION LOK SABHA

STARRED QUESTION NO. :461 1To  be answere-rt  on the 6th April 2017)

## OPERATIONS OF FOREIGN AIRLINES UNDER REGIONAI,

## CONNECTIVITY  SCHEME

*461.

KUMARI SHOBHA KARANDLAJE

Will the Minister of CIVIL A\TATION ildEfrtrtrdII*

be pleased to state:-

- (a) whether his Ministry  proposes  to throlv open llight operations  to foreign airlines  under the Regional Conncctivity Scheme (RCS);
- (b) if so, whether his Ministry has initiated the procedure  to amend the rules to eneble the foreign airlines to apply for operating  flights under RCS so as to expand the civil aviation s€ctor  and if so, the details thereof;
- (c) whether necessary amendments  would be made to provide freedom to foreign professionals to have more say at the top level management  in airline companies and if so, the deteils thereof;
- (d) whether rules are being amended  in pursuance  to the decision of the Government to allow 100 per cent Foreign Direct Investment (FDI) in Civil Aviation sector and if so, the details thereof; and
- (e) whether immediately  after the amendment, the Indian Airlines would be able to raise funds for their expansion  through FDI and if so, the details thereof?

## ANSWER

(Shri Ashok Gajapathi Raju Pusapati)

Minister  of CIVIL AVIATION drdrJftJrtrdaif

(a) to (e): A statement is laid on the table of the House.

STATEMENT IN RESPECT OF LOK SABHA STARRED QUESTION  NO. 461, REGARDING ''OPERATION OF FOREIGN AIRLINES UNDER RNCTONAT,  CONNECTIVITY SCHEME '' TO BE ANSWERED  ON 06.04,2017.

- 1r) and  (b):  Ministrv of Civil Aviation has launched  Regional Connectivity icnem"'(RCS) - UDAN on 21st October, 2016 to stim-ulate Regional  Air Connectii,ity  by making it affordable.  The selection of airline  operators under the schemi ii  madelhrough  transparent bidding process  subjett to compliance with the provision of the Scheme.  9idd.ing  under the scheme intei-alia  permits ai;line operltors having-valid  air operator  permit.or equivalent  lrermit  issued  by the competent civil aviation regulatory  authority oiany foreign country. In ihe event that anJ applicantis identi{ied  as selected airlin"e oper=ator,  such applicant  must obtain a valid Air O-perator  Certificate (AOC)  ior scheduled air transport services / scheduled commuter air iransport services  from Director-General of Civil Aviation  (DGCA) before commencement of operations under RCS. However,  foreign airlines  registered in a foreign  country  are not allowed to dir€ctly operate in domestic sectors, including RCS sectors,  within India.
- (c)  to  (e):  As oer the Foreign  Direct  Investment  (FDI) policy as contained in itr'e  'Cbnsotiaited  FDI Poliiy Circular of 2016', FDI limit for Scheduled Air Transport Service/ Domestic Scheduled  Passenger- A^irline andIegional.A^ir Transport Service has been raised from 49Yo to l00oh,' with FDI up to 497o permiited  under automatic route lnd fil pqVo-n-q !f !"-t!trough  Governme-nt ipproval. For Non-Resident  Indians (NRI'S), 100o/o FDI will continue to be aitbwed under automatic  route. However,  foreign airlines would continue  to be allowed to invest in capital of Indian companies  operating  scheduled -and non-scheduled air transport services up to the limit of 497o of their paid up capitsl through Government  Route. This is subiect to the.laid down conditions in'the existing PDI policy and Sectoral and sec-urity conditions. The Government  his not r6ceivdd  any proposal  recently from any foreign airline for investment  in Indian carriers.