The Union government is to soon take up a new proposal to allow foreign airlines to acquire a stake in domestic airlines. The new proposal, which addresses security concerns that have been raised earlier, is expected to come up before the Union Cabinet shortly.
Now, sources claim that, various differences between Ministries, and even some political parties, have been sorted out and accordingly a new proposal has been readied with more and more safeguards.
One of the key safeguards suggested is to allow foreign investment only through the inter-ministerial Foreign Investment Promotion Board route. With the Home Ministry being a part of the FIPB, any proposal seen as against India's security interests will be blocked, the source said.