No PIO investment in Aviation sector | india | Hindustan Times
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No PIO investment in Aviation sector

Govt has opposed the move keeping in view the national security interests.

india Updated: Feb 22, 2006 17:33 IST
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Keeping in view the national security interests, government has opposed the move to allow the Persons of Indian Origin (PIOs) to invest in Civil Aviation sector as has been allowed for NRIs, Rajya Sabha was informed on Wednesday.

"The Ministry of Home Affairs has in this case, pointed out that FDI up to 49 per cent in the Civil Aviation sector has been pegged keeping in view the national security interests and the need to retain the ownership and management control of the sector in the hands of Indian, Civil Aviation being a sensitive sector," the Minister of State, Home Sriprakash Jaiswal, said in a written reply.

As of now, Jaiswal said the Persons of Indian Origin (PIOs) are not Indian citizens. As such, the Ministry has not favoured grant of 100 per cent FDI in this sector by PIOs from the security angle.

Jaiswal said the arrest of a Dubai-based engineer in Delhi on Feb 3rd, 2006 and recovery of Rs 55 lakh, RDX, and Detonator from him confirms the involvement of Middle East money exchangers in Havala operations to fund militancy in Jammu and Kashmir.

"Various agencies of the Central government and the state governments are coordinating amongst themselves and taking necessary actions for tackling the menace of terrorists funding in all its dimensions," he said.

Apart from this, Jaiswal said government has constituted two apex Level Committees, one at central-level and another at state-level to check the inflow of funds to the terrorists/secessionist outfits in Jammu and Kashmir.