100% FDI in airlines, Brownfield airports

The Government will now permit 100% FDI in Brownfield airport projects under automatic route, extending the earlier cap of 74 per cent. The extant FDI policy on Airports permits 100% FDI under automatic route in Greenfield Projects. As per the present FDI policy, foreign investment up to 49% was allowed under automatic route in Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and regional Air Transport Service. It has now been decided to raise this limit to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 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. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi.