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Mallya meets Sharma on FDI in aviation

PTI     April 11, 2012
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 .


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.


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.


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

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