ANNOUNCEMENT 14 Sep 2012In September 2012, the government of India announced changed incentives for foreign investors entering the country.
NUMBER OF INTERVENTIONS
Press Information Bureau, Government of India. English Release of the Cabinet Committee on Economic Affairs, 14.09.2012:
Ministry of Finance, Department of Economic Affairs, Press Release of 25.03.2013: http://www.fipbindia.com/admin/case_approval/case03252013.pdf
On 14 September 2012, the Indian Cabinet Committee on Economic Affairs approved a new regulation, which allows foreign airlines to invest in scheduled and non-scheduled air transport services. Previously, foreign airlines were only allowed to invest in cargo airlines as well as helicopter and seaplane service companies.
The new regulation includes the following restrictions:
- the foreign investment does not exceed 49 per cent of the total value of the project;
- the foreign company has to be registered and must principally operate in India;
- its chairman and at least two-thirds of the directors must be Indian citizens.
As of March 2013, the Foreign Investment Promotion Board (FIPB) of India reports that AirAsia is the only company having set up a JV company in India, whereas Farnair Switzerland is the only one having purchased shares of an Indian company.