New Delhi: Government today (June 2, 2004) decided to put a 49 per cent cap on foreign direct investment in the modernisation of Mumbai and Delhi airports and extended the last date for putting in Expression of Interest to July 20.

Announcing this, Civil Aviation Minister Praful Patel told a news conference that Airports Authority of India (AAI), as proposed earlier, will retain 26 per cent equity in the Special Purpose Vehicle to be set up for this purpose.

Besides, Indian companies and financial institutions will at least have a 25 per cent stake in the SPV to ensure that 51 per cent equity is with Indians.