Sources tell CNBC-TV18 that the Civil Aviation Ministry has recommended 49% FDI in aviation, reports CNBC-TV18's Rituparna Bhuyan.
There is no clarity on the timeline. But sources, in the Department of Industrial Policy and Promotion, say that the internal process on aviation FDI has started within the department. The DIPP has received a note recommending 49% FDI from the Aviation Ministry.
One of the issues that DIPP will be discussing in its internal processes will be how to factor in or exempt this sector from the takeover code because going by the takeover code the net stake that one company will have to pick up will be around 51%. The trigger comes in at 25% and open offer is about 26%.
But the Aviation Ministry has recommended only 49% FDI. So, DIPP will have to factor in some kind of solution to ensure that the sector is ready for only 49% FDI. That will be one of the key issues that the ministry will have to decide on.
