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Saturday, 15 September 2012


GOVT ALLOWS 49 PCT FDI IN LOCAL AIRLINES

An aircraft is silhouetted by the sun in New Delhi June 13, 2011. REUTERS/B Mathur/Files
Image : B Mathur/Reuters

(Reuters) - India decided to allow foreign airlines to buy stakes of up to 49 percent in local carriers, a long-awaited policy move that could provide a lifeline to the country's debt-laden airlines by opening up a fresh source of funding.

The move, which comes with conditions, is a part of massive big-ticket reforms announced by India on Friday, including opening up its supermarket sector to foreign firms, as it seeks to revive economic growth and avoid a ratings downgrade.

"This is a very positive step," said Amber Dubey, head of aviation at KPMG. "I do not expect a flurry immediately ... but there will be interest. A lot of people have been watching."

15/09/2012  :  Anurag Kotoky and Nigam Prusty / Reuters India.


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