New Delhi : Government may be open to tweaking FDI norms in the aviation sector to attract investment, for which there has to be “willing buyer and a willing seller”, Finance Minister P Chidambaram said.
“What is there to tweak, we have allowed 49 %. Let us see whether there are potential investors. These are executive decisions, they can always be tweaked,” he told PTI in an interview.
“See, merely because you raise it (the 49 % limit) to 51 % does not mean somebody is going to come. There may be a willing buyer, there has to be a willing seller also. The Indian company must be willing to yield control. And (there is) no evidence of that. There are only half a dozen players in the sector,” Chidambaram said.
He was asked whether there was a possibility of tweaking the FDI norms for the aviation sector due to the lack of response so far.
Under the changes brought about by the government in the FDI norms in September, foreign carriers were allowed to pick up stake of up to 49 % of paid-up capital in domestic airlines.
In spite of this policy, the total FDI inflow into the air transport sector between January 2000 and April 2012 was merely $ 434.75 million, which was 0.25 % of the total FDI inflows into the country.