New Delhi: The Cabinet is likely to soon take a decision on a proposal to allow foreign airlines to pick up stake in domestic carriers, most of which are facing financial crisis, a senior government official said.
   
"We have moved a Cabinet note for this ... soon they will take up the issue," the official said.
    
However, the official declined to disclose further details.
    
The cash-crunch Indian airlines are facing several problems including rising fuel prices and strong competition.
    
Currently, India does not permit foreign airlines to buy stake in domestic airlines, although foreign investors are allowed to hold 49 percent.
    
Accepting a major demand of the cash-strapped aviation industry, the government on January 17 decided to launch the process to allow foreign airlines picking 49 percent stake in Indian carriers.
    
The debt-ladden Kingfisher Airlines is strongly pitching to allow foreign airlines to invest in domestic carriers.
    
Kingfisher shares closed 7.49 percent up at Rs 18.65 on Tuesday on the BSE.
    
India's civil aviation sector grew at 18.5 percent in the last seven years and the government has taken various steps to resolve the woes faced by airline industry, the Economic Survey for 2011-12 had said.

(Agencies)