NEW DELHI (TIP): The security agencies, including the Intelligence Bureau (IB), have raised concerns over the Centre’s decision to allow 100% foreign direct investment (FDI) in domestic airlines’ operations.

Recently, Union Home Secretary Rajiv Mehrishi chaired a meeting to discuss the matter, where sources said, the IB and other agencies expressed concerns over the government’s decision on allowing 100% FDI for running domestic airlines.

Sources said, the meeting, which was attended by senior officials from the Civil Aviation Ministry and the Ministry of Home Affairs (MHA), including the IB, was called to discuss issues related to proposed amendments to the Aircraft Rules, 1937.

It is learnt that the amendments are required to operationalise the framework for allowing foreign non airline players to own up to 100% stake in domestic carriers. “As the government had decided to put in place liberal FDI policy last year only, this can become reality only once the relevant rules are put in place,” a senior MHA official said.

Noting that aviation is a “highly sensitive sector”, the IB, during the meeting, suggested that it would be prudent to allow 100% FDI in the sector. To justify its claim, the IB also contended that even developed countries such as the US and Canada have permitted foreign entities to have only up to 25% stake in their respective domestic carriers.

Source: The Tribune