Mallya meets Sharma on FDI in aviation

Crisis-hit Kingfisher Airlines Chairman Vijay Mallya on Wednesday met Commerce and Industry Minister Anand Sharma.

The meeting comes in the backdrop of a government proposal seeking permission to allow foreign carriers to pick up stake in domestic airlines .

FULL COVERAGE: How Kingfisher landed itself in this mess

The Industry Ministry has circulated a Cabinet note for the same.

India now does not permit foreign airlines to buy stake in domestic airlines, although foreign investors are allowed to hold 49 per cent.

Accepting a major demand of the cash-strapped aviation industry, the government on January 17 decided to launch the process to allow foreign airlines picking 49 per cent stake in Indian carriers.

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Allowing foreign airlines to buy stake in domestic carriers is expected to benefit Kingfisher Airlines, which is burdened by a debt of over Rs 7,000 crore.

Kingfisher is strongly pitching for permission to allow foreign airlines to invest in domestic carriers.

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Kingfisher shares closed 6.43 per cent up at Rs 19.85 today on the BSE.