FDI in Aviation Sector

FDI in Aviation Sector 

With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% Foreign Direct Investment (FDI) under automatic route has now been allowed in Brownfield Airport projects. This move would also serve in further developing the domestic aviation infrastructure. Further, FDI limit for Scheduled Air Transport Service, Domestic Scheduled Passenger Airline and regional Air Transport Service has been raised from 49% to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For Non-Resident Indians (NRI's), 100% FDI will continue to be allowed 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 49% of their paid up capital and subject to the laid down conditions in the existing policy. Increasing the FDI limit for these aviation services shall not only encourage competition by lowering prices but shall also accord choice to consumers.


Moreover, FDI policy as contained in the 'Consolidated FDI Policy Circular of 2016', as amended from time to time, is subject to the conditions of the extant policy on specified sectors and applicable laws/ regulations security and other conditionalities. Accordingly FDI policy on Civil Aviation sector is also subject to sectoral and security conditions.

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Proposals for Construction of International Airports

Ministry of Civil Aviation have, formulated a National Civil Aviation Policy, 2016 which provides for promoting regional connectivity by way of revival of un-served and under-served airports and airstrips. Revival of 50 such airports in the next three years is to be "demand driven", depending on firm commitment from airline operators and where the State Government concerned agrees to provide various concessions envisaged in the Policy.

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Fourth runway at Delhi Airport

The Delhi International Airport Private Limited (DIAL) has included construction of a new fourth runway parallel to the existing runway in the just concluded Master Plan, 2016 of IGI Airport, New Delhi with features to handle large wide body aircrafts, navigational aids and lighting to permit operation in low visibility etc.

This information was given by the Minister of State for Civil Aviation, Shri Jayant Sinha in written reply to a question in Rajya Sabha today.