In what could breathe life into the domestic aviation industry grappling with huge losses, the government will shortly consider a proposal to allow foreign airlines pick up to 49 per cent equity in Indian carriers. This is despite stiff opposition from the country’s largest private airline Jet Airways.

A Committee of Secretaries, chaired by Cabinet Secretary K M Chandrasekhar, will take up the proposal on November 17, an official told The Indian Express. At present, the government allows 49 per cent foreign direct investment in domestic carriers but bars foreign airlines from holding any stake directly or indirectly.

Initially, the Civil Aviation Ministry had recommended that foreign airlines be allowed to invest 25 per cent in domestic airlines. The Ministry had kept it at less than 26 per cent since a higher holding would have let foreign airlines a say in management. But the Department of Industrial Policy and Promotion (DIPP) suggested that foreign airlines be permitted to acquire up to 49 per cent.

Officials said that National Aviation Company of India Ltd of Air India came under the purview of this proposal but there were no plans to either sell government stake in the national carrier or induct a foreign partner.