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India “would welcome Branson investment”
The Indian government would reportedly welcome investment by Sir Richard Branson in one of the country’s airlines – but only as long as he does so as an individual. According to the news website New Kerala, the Indian Civil Aviation Secretary has stated that foreign airlines are not allowed to invest in Indian carriers, but that foreign individuals and financial institutions are allowed to buy up to a 49 per cent stake in Indian airlines. Ajay Prasad is quoted as saying: “If a person has a number of business interests including an airline and wants to invest in an Indian airline, it need not be seen as an investment from an airline. We have to study any proposal to see whether it is a surrogate or legitimate investment. Every case of foreign direct investment is taken up separately.” Branson has reportedly stated that he wants to buy a 25 to 49 per cent stake in an Indian carrier and that he was already in talks with two airlines. Report by Tim Gillett, News From Abroad Ltd
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