FDI in airports capped at 49%

 In a slew of big ticket decisions, the civil aviation ministry has decided to cap the foreign direct investment (FDI) in modernisation of the Mumbai and Delhi airports at 49 per cent, modernise the fleet of Alliance Air, put in place a civil aviation policy by 2004 and complete the fleet acquisition process of the two state owned airlines by 2004. The government will also take steps to put a stop to the increase in the hike in aviation  turbine fuel (ATF) prices.

 Besides, the government has also extended the last date for putting in the expression of interest to July 20. Making this announcement, the  Civil Aviation minister Praful Patel, said that the Airports Authority of India (AAI) would retain 26 per cent equity in the special purpose vehicle (SPV) to be set up for modernising the two airports.

 Besides, Indian companies and financial institutions would at least have a 25 per cent stake in the SPV to ensure that 51 per cent equity was with Indians.

 Seeking to allay fears of any reversal of reforms in the modernisation of airports , Patel said,