Govt allows FDI in multi-brand retail, aviation

[Tiger80]

T he government today relaxed foreign direct investment (FDI) in aviation, multi-brand retail, power exchanges and broadcast services -- key economic reforms that have been stalled for months by political gridlock in New Delhi. The government has decided to allow foreign airlines to buy upto 49% stake in local Indian carriers in a much-awaited policy move that provides a potential lifeline to the country's debt-laden airlines by opening up a fresh source of funding. The move will help troubled companies like Kingfisher, Spicejet and Go Air. Gulf-based carriers like Emirates could be the first foreign airlines to enter the Indian aviation sector. Also, the FDI cap on various streams of broadcast services has been raised to up to 74%. In another important decision, the government approved the disinvestment of five Public Sector Units (PSUs), including Oil India (10%), Nalco (12.5%) and Hindustan Copper (9.59%). http://www.moneycontrol.com/news/wire-news/govt-allows-fdiaviation-retail_757945.html ------------------------------------------------------------------------------------------------------------------------------ Govt announces 51% FDI in multi-brand retail Government announces foreign direct investment in multi-brand retail. TNN | Sep 14, 2012, 05.46PM IST NEW DELHI: The government has finally decided to bite the bullet by announcing foreign direct investment (FDI) in multi-brand retail. Now state governments will decided the modalities of implementations, TV reports say. Accoding to TV reports, although Congress-ruled states such as Rajasthan, Delhi, Uttarakhand and Manipur have extended their supports, BJP-ruled states have opposed the move. The entry of large retail chains in India is expected to benefit consumers through price reductions facilitated by the reduction in intermediaries effected by retail giants such as Walmart, Tesco and Carrefour. Investments in cold-storage and warehousing will ease supply-side pressures that have driven food inflation to double digits, according to an analysis by ICRA. http://timesofindia.indiatimes.com/business/india-business/Govt-announces-51-FDI-in-multi-brand-retail/articleshow/16397529.cms