Sunday, September 16, 2012

Govt opens FDI floodgates for global airlines and retailers



Jolted out of policy inaction, the Manmohan Singh-led United Progressive Alliance (UPA) government on Friday opened the FDI floodgates — across sectors ranging from aviation to retail, and media to power — in a single stroke. In another step signalling a reform push, could fetch the exchequer around Rs 15,000 crore, disinvestment in four PSUs — Nalco, MMTC, Hindustan Copper (HCL) and Oil India — was also okayed by the Union Cabinet. Domestic airlines, in screaming need of funds, have been allowed up to 49 per cent foreign direct investment (FDI) from global airlines. FDI in India’s multi-brand retail, where global chains like Walmart, Carrefour and Tesco have been waiting for several years to enter, will be capped at 51 per cent; but, it will be up to states to take a final call.
Source: Business Standard

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