New Delhi: The Union Cabinet would consider a proposal to allow foreign airlines to buy stakes in local carriers on Friday, but a proposal to allow foreign supermarkets to invest in Asia's third largest economy is not on the agenda, trade minister Anand Sharma had said.

Read more: FDI in aviation soon to come: Ajit

Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 percent.

The Centre had initiated the process in January this year but key United Progressive Alliance (UPA) ally Trinamool Congress (TMC) was opposed to it.

Cash-strapped Kingfisher Airlines, which is burdened with a debt of over Rs 7,000 crore, has been in the forefront of pushing for permission to allow foreign airlines to invest.

Meanwhile budget carrier SpiceJet on Thursday had indicated ‘preliminary discussions’ with a Gulf airline for potential investment in the Indian budget carrier, according to news report.


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