GOVT ALLOWS 49 PCT FDI IN LOCAL AIRLINES
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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