Question : INVESTMENT BY PIOS NRIS IN AVIATION SECTOR

(a) whether the Government has allowed Persons of Indian Origin (PIOs) and Non-Resident Indians (NRIs) to invest upon cent per cent in domestic aviation sector;

(b) if so, the details thereof;

(c) whether the Government has received some representations for non-implementation of abvoe policy decision; and

(d) if so, the steps being taken to issue directives to the concerned Ministries/Departments and State Governments clarifying Government`s stand on Foreign Direct Investment (FDI) in aviation sector?

- MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF CIVIL AVIATION( SHRI PRAFUL PATEL )

(a) and (b):- No Sir. The existing Civil Aviation Requirements stipulate that a scheduled/non-scheduled air transport operators permit can be granted only to a citizen of India or to a company/body corporate provided, inter-alia, that its substantial ownership and effective control is vested in Indian nationals. Hence, persons of Indian Origin, who are not Indian citizens, can not be permitted to opeate air transport services in terms of the present regulatory position.

(c):- The Government had received a letter from M/s Magic Air Pvt. Ltd. with reference to their appliation for grant of NOC to operate Schedule Air Transport Services.

(d) :- The matter is under examination.