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DIPP proposes 26 % FDI in domestic airlines
- The Department of Industrial Policy and Promotion (DIPP) on Tuesday moved a Cabinet note, proposing 26 per cent foreign direct investment (FDI) in domestic airlines
- The note is contrary to the proposed move by the Civil Aviation Ministry, which has stuck to 24 per cent FDI in domestic carriers.
- Investor with 26 per cent or more holding is considered strategic, as he can have a say in the policy decision of a corporate entity under the Indian company laws.
- At present, FDI in domestic passenger airlines is allowed up to 49 per cent by overseas entities, other than foreign airlines. Non-resident Indians (NRIs) can invest 100 per cent.
Reserve Bank cannot arrest rupee slide: Pranab
- Even as the rupee slumped to a historic low at 52.73 against the United States greenback during intra-day forex market trade, the government on Tuesday maintained that intervention by the Reserve Bank of India (RBI) would not be able to arrest the slide, mainly because the crux of the problem lay in the pull-out of funds by foreign institutional investors (FIIs), triggered by the Eurozone sovereign debt crisis and the uncertain global economic environment.
- the rupee hitting an all-time low, which is sure to exert an additional inflationary pressure on the economy at a time when the government is at pains to contain the price spiral
