FDI approval likely to be delayed
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The upcoming presidential elections are likely to delay the decision on the approval of Foreign Direct Investment (FDI) for domestic airlines in India. The proposal to allow 49% direct investments by overseas airlines is unlikely to be cleared during the budget session of parliament, which ends on 22 May, people familiar with the situation told the Live Mint.
“The relaxation of FDI rules would take more time. This will not be cleared in the ongoing parliamentary session. It may have to wait till the Presidential elections are over,” a senior aviation ministry official was quoted as saying by the publication.
The election to choose a new president is expected to take place in June or July 2012. Any delay to the FDI approval will directly impact loss-making Kingfisher Airlines, which is awaiting investment to turn the airline into a profitable venture.