Government on Tuesday decided to allow airlines to directly import jet fuel to enable them save on high incidence of tax. It also allowed national carrier Air India to raise 7,400 crore rupees by issuing bonds or other means. The decision was taken by a Group of Ministers, GoM, headed by Finance Minister Pranab Mukherjee.

The GoM was also apprised of the decision to allow foreign airlines pick up 49 per cent stake in Indian carriers. Civil Aviation Minister Ajit Singh told reporters,while the decisions on direct import of aviation turbine fuel and allowing foreign airlines to invest would go to the Union Cabinet for a final nod, the Cabinet Committee on Economic Affairs would take up Air India's financial
restructuring plan for approval soon.

The meeting was also attended by Home Minister P. Chidambaram, Petroleum Minister S Jaipal Reddy, Commerce Minister Anand Sharma and Planning Commission Deputy Chairman Montek Singh Ahluwalia, apart from top officials.