FDI Policy with regard to PIOs

for Ministry of Overseas Indian Affairs | Date - 25-08-2005


Rajya Sabha

The Minister of State in Prime Minister’s office, Shri Prithviraj Chavan told the Rajya Sabha that as per the existing policy, NRIs are eligible to invest upto 100% in Air Transport Services (Domestic Airlines) under the automatic route. However, PIOs have not been able to avail this facility, as the guidelines of the Ministry of Civil Aviation stipulate that a scheduled/non-scheduled air transport operator’s permit can be granted only to a citizen of India or to a company/body corporate provided, inter-alia, that substantial ownership and effective control is vested in Indian nationals.

Shri Chavan further told that parity of PIO Card Holders with NRIs in regard to investments in the Civil Aviation sector is under consideration of the Ministries concerned.

This information was given in reply to a question by Smt. Kamla Manhar.

AK/SK/JA
(Release ID :11586)

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