New Delhi: The government is expected to soon take a view on the proposal of allowing foreign airlines to buy stakes in domestic carriers as the Industry Ministry has moved the final Cabinet note on the matter.
"We have moved the Cabinet note...it is work in progress," Commerce and Industry Minister Anand Sharma told reporters.
According to sources, before the proposal is taken up by the Cabinet, Prime Minister Manmohan Singh is likely to consult senior ministers to build a consensus on the contentious issue.
It was West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee who had forced the government to put on hold the decision to allow 51 per cent foreign direct investment (FDI) in multi-brand retail.
Finance Minister Pranab Mukherjee in his Budget speech had said that a proposal to allow foreign airlines to participate with up to 49 per cent in the equity of an air transport undertaking, engaged in operation of scheduled and non-scheduled air transport services, is under active consideration of the government.
At present, India allows foreign investors, not related in any way to airline business, to buy up to 49 per cent stake in domestic airlines, but foreign carriers are not permitted to invest in them.
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